KUALA LUMPUR: Alliance Bank Malaysia Bhd’s net profit declined to RM158.42 million in the second quarter ended Sept 30, 2022 (Q2’23) from RM172.74 million in the same quarter last year.
Revenue, however, rose to RM480.57 million from RM452.98 million previously driven by good progress in its strategic priorities and growth momentum, it said in a filing with Bursa Malaysia on Nov 29.
For the first half ended Sept 30, 2022 (H1’23), Alliance Bank’s net profit rose to RM370.58 million from RM318.76 million previously while revenue advanced to RM954.65 million versus RM935.94 million previously.
The bank said net interest income grew 12.4% year-on-year (y-o-y) in H1’23 to RM813 million due to higher loans volume and overnight policy rate hike impact while net interest margin improved 11 basis points (bps) to 2.64%.
It said overall loans grew by 6.7%, outpacing the industry average of 6.4%, attributable to the growth in small and medium enterprises (SME) banking and commercial banking, which rose 14% and 16.8% y-o-y, respectively.
“Customer-based funding was 8.4% higher y-o-y and current and saving accounts (CASA) ratio maintained at the top of the industry at 48.7%,” it said.
Alliance Bank said net credit cost improved to 12.3bps as customers successfully graduated from the payment relief programmes with loans under relief reduced to RM1.97 billion, representing 4.2% of the bank’s total loan book.
It said the bank’s capital positions and liquidity remained strong with Common Equity Tier-1 (CET 1) ratio at 15.1% while Tier-1 Capital ratio was at 16.4%.
The bank said total capital ratio was at 20.5%, liquidity coverage ratio was at 164.4% and loan to fund ratio stood at 85.7%.
Group CEO Kellee Kam said the strategic priorities have guided the bank to achieve success and sustainable results in the SME sector as evidenced by its market share in the segment relative to its size and improving performance.
“Going forward, we will focus on broadening our strategy and expanding into new areas beyond SME to accelerate our business growth,” he said.
Meanwhile, Alliance Bank has also declared a first interim dividend of 12 sen per share which would be paid on Dec 28, 2022. – Bernama