KUALA LUMPUR: Alliance Bank Malaysia Bhd’s net profit eased to RM150.54 million in the first financial quarter ended June 30, 2023 (1Q FY2024) from RM212.16 million amid a decline in profit in all segments comprising consumer banking, business banking and financial markets.
Revenue narrowed to RM466.26 million versus RM474.07 million, it said in a Bursa Malaysia filing today.
The consumer banking segment profit before tax (PBT) declined RM55.5 million to RM15.9 million, while the business banking division, comprising corporate, commercial and small and medium enterprises (SMEs) banking, recorded a PBT of RM124.4 million, a decrease of RM14 million year-on-year (y-o-y).
The financial markets business PBT fell RM20 million to RM58.3 million and Islamic banking, which consists of consumer banking, business banking and financial markets, posted a RM29.2 million net profit, RM16.3 lower y-o-y.
Alliance Bank said net interest income improved by RM9.3 million, or 2.4 per cent y-o-y, due to higher loan growth and the overnight policy rate increase.
Net interest margin stood at 2.43 per cent, with pressure expected to continue to remain due to deposit repricing and competition.
Its loan, advances and financing grew by 7.9 per cent y-o-y to RM49.8 billion, mainly driven by SME, commercial and consumer banking, which grew by 13.4 per cent, 11.7 per cent and 7.1 per cent, respectively.
Meanwhile, the current account/savings account (CASA) ratio stood at 43.9 per cent, and customer-based funding was at RM53.7 billion.
The bank expects to broaden its focus and expand into new areas beyond SMEs under the ACCELER8 strategic plan to accelerate its growth and pay more attention to consumer banking, wealth management and Islamic banking.
“The group will also continue to build strategic partnerships to widen its product offering and distribution, create more value for its customers and expand its business presence in fast-growing states and secondary cities to capture the growth opportunities of these economic corridors.
“With prudent loans growth above the industry average, strong credit risk management, controlled loan loss provisions, strengthening the deposit/CASA proposition and cost management, the group aims to launch itself into the top quartile in the industry for return on equity,” it noted. – BERNAMA
