ALLIANCE BANK 3Q NET PROFIT RISES TO RM186.67 MLN ALONG WITH HIGHER REVENUE

KUALA LUMPUR, Feb 27 (Bernama) -- Alliance Bank Malaysia Bhd’s net profit for the third quarter ended Dec 31, 2024 (3Q FY2025) was 5.5 per cent higher at RM186.67 million from RM176.86 million a year earlier.

The improvement was driven by higher revenue, partially offset by an increase in allowance for expected credit losses and operating expenses.

Revenue for the quarter under review also rose 10 per cent to RM561.28 million from RM509.92 million previously.

For the nine-month period, net profit rose to RM553.23 million from RM512.73 million and revenue was RM1.71 billion, up from RM1.50 billion previously.

The bank said in a Bursa Malaysia filing today that its net interest income rose 11.8 per cent to RM494.5 million, an increase of RM52.3 million compared to the previous quarter, driven primarily by higher loan growth. Its net interest margin (NIM) stood at 2.45 per cent, compared to 2.49 per cent in the third quarter of the previous financial year. 

Other operating income declined by RM0.9 million or 1.3 per cent, mainly due to lower wealth management income and processing fees, though this was partially offset by higher treasury and investment income.

Meanwhile, operating expenses rose by RM17.4 million or 7.0 per cent, largely due to higher establishment and marketing costs. The bank’s net credit cost stood at 6.1 basis points, up from 4.6 basis points in 3Q FY2024.

The bank anticipates Malaysia’s economic advancement will continue to be bolstered by sustained domestic demand and renewed governmental efforts to stimulate growth.

“However, we maintain a cautious stance regarding potential downside risks to growth stemming from external uncertainties,” it said.

The bank said it remains optimistic of maintaining its positive financial performance and remains committed to realising growth objectives.

“In FY2025, our focus areas include to continuing momentum in attracting more customers, and deepening client wallet share post-customer acquisition by enhancing product and channel offerings for key target segments and sectors in both consumer and business banking.

“Another area is to strengthen Islamic banking propositions to drive incremental growth, with a focus on scaling up differentiated Islamic banking solutions by expanding unique shariah-compliant and value-based Intermediation propositions,” it added.

-- BERNAMA