Alliance Bank Malaysia Berhad (Alliance Bank) today announced a net profit after tax of RM547.7 million for the nine months ended 31 December 2022 (9MFY2023), an increase of 16.6% year-on-year (YOY).
9MFY2023 revenue rose 2.5% YOY to RM1.45 billion driven by net interest income improvement of 12.4% YOY to RM1.25 billion. Accordingly, net interest margin improved 15 basis points (bps) to 2.68% since March 2022.
Client-based fee income (excluding brokerage) grew 2.5% YOY to RM211.9 million, driven by higher wealth management, foreign exchange sales and trade fees.
Cost-to-income ratio was 44.1%.
Overall loans grew by 6.2% YOY with SME and Consumer Banking loans growing by 12.9% and 3.5% YOY respectively. Meanwhile, customer-based funding grew 7.9% YOY and saw a shift towards fixed deposits, which increased by 4.6%.
The Bank’s CASA ratio remained one of the highest in the industry at 45.8%. The Bank’s net credit cost for the period improved by 12.5 bps YOY to 20.0 bps. Loans under relief decreased to RM1.35 billion, representing 2.9% of the Bank’s total loan book.
Alliance Bank continues to provide support to customers who need further financial assistance. Alliance Bank maintained its robust capital and liquidity positions with Common Equity Tier-1 (“CET 1”) ratio at 15.1% and Tier-1 Capital at 16.0% as at 31 December 2022.
Total capital ratio was at 20.1%. The Bank’s liquidity coverage ratio stood at 154.2%, and loan to fund ratio was 86.8%.
New-to-bank customer acquisition grew 73% YOY to approximately 65,000 customers. At the same time, the Bank doubled the acquisition of dual-relationship business owners to 6,000 new business owners with both business and personal products.
It also doubled its average monthly disbursement of personal loans via its digital channels. Overall, customer digital adoption continued to improve, with digital transactions registering a 15% increase YOY.
