KUALA LUMPUR: Alliance Bank Malaysia Bhd expects loan growth to be between eight and 10 per cent this year on the back of a stronger economic environment for the first half of the year.
Group chief executive officer Kellee Kam said the bank focuses on quality loan growth instead of absolute loan growth.
"Where we see opportunities to accelerate loan growth, we do it, but we will look at profitability and ensure to not take excessive risk. We have guided growth of eight to 10 per cent."
"That is on the basis of growing ahead of the market so we do want to continue improving our market share. If we do see opportunities to accelerate then we may take it but as it stands, we are looking at eight to 10 per cent (loan growth)," he said in a virtual press conference after the bank's 42nd annual general meeting.
Kam said the bank expects loan growth to continue growing ahead of the industry and it remains cautiously optimistic on the bank's outlook moving forward.
"We are cautious that external environment as well as geopolitical issues still present potential macro stressors to interest rates and financial markets and we remain vigilant going forward," he added.
Alliance's GIL dropped to 2.1 in its financial year ended Mar 31, 2024 (FY24) from 2.51 recorded in the previous financial year.
"We do expect our GIL to be downward trending. We remain very cautious about how we look at our asset quality," he added.
Kam also said the bank expects its net interest margin (NIM) to hover between 2.4 and 2.45 per cent, which is still the highest in the industry.
The bank's NIM stood at 2.48 per cent in FY24.
"Our robust performance across key financial and non-financial metrics underscores the positivedirection and momentum of our Acceler8 transformation strategy."
"In our endeavour of becoming 'The Bank For Life' for our customers, we strive to continuously innovate and enhance our offerings to deliver timely, convenient and personalised solutions tailored to their needs throughout their entire lifetime."
"Beyond just a bank, we are committed to being a true partner, supporting our customers atevery stage of their growth journey," said Kam.
Launched in January 2023, the Acceler8 strategy has been instrumental in driving the bank's growth and transformation.
Kam said the bank also aims to sustain its double-digit growth in the small and medium-sized enterprises (SME) segment.
To deliver on this target, the bank will prioritise accelerating its SME growth initiatives, increasing customer acquisition through multiple channels, and boosting sales effectiveness and efficiency.