KUALA LUMPUR: Alliance Bank Bhd posted a 1.9 per cent increase in net profit of RM690.4 million for the financial year ended March 31, 2024 (FY24) compared to RM677.8 million a year ago.
In a filing with the bourse, the bank said growth was driven by elevated revenue and a reduction in allowances for expected credit losses.
It recorded revenue of RM2.02 billion for the year, a 5.2 per cent increase year-on-year (YoY) from the previous corresponding year's RM1.9 billion.
Alliance Bank said the revenue growth was attributed to improvements in net interest income (NII) and non-interest income (NOII).
"Net interest income saw a significant improvement, rising by RM67.5 million or 4.1 per cent YoY, predominantly attributed to heightened loan growth and an increase in the Overnight Policy Rate (OPR)," the bank said
Alliance Meanwhile, the 15.1 per cent YoY NOII (excluding brokerage) growth to RM300.2 million was driven by higher wealth management income, foreign exchange fees and banking services fees. Cost-to-income ratio for the year was at 48.2 per cent," it said.
The bank has proposed a second interim dividend of 11.45 sen per share, bringing the total dividend to 22.3 sen per share for a 50 per cent total dividend payout ration.
"This brings the total dividend declared for the financial year to RM345.2 million," it said.
Alliance Bank's Acceler8 also continues to yield positive results across all eight of its growth pillars which has enabled Alliance Bank to make significant strides towards becoming "The Bank For Life" for its stakeholders.
It maintained the positive trajectory and momentum on the small and medium enterprises (SME) front, acquiring 12,000 SME New-to-bank (NTB) customers, representing more than 18 per cent YoY growth.
"The bank registered double-digit YoY expansion of its SME loan portfolio at 12 per cent compared to an industry average of 7 per cent, with corresponding increase of market share to 5.3 per cent, compared to financial year 2023 (FY23) at 5 per cent," it added.
Alliance Bank group chief executive officer Kellee Kam said the FY24 results affirmed the direction and strong execution of the Acceler8 strategy.
"Our full-year performance validates our strategic direction as we continue to transform to fulfil our brand purpose of becoming 'The Bank For Life' for our customers, delivering value and serving as a dependable partner at every step of their financial journey," he added.