KUALA LUMPUR: Alliance Bank Malaysia Bhd reported a 17.3 per cent growth in net profit year-on-year (YoY) to RM176.7 million for the first quarter of the financial year ending March 31 2025 (1QFY2025).
This was on the back of a 15.8 per cent YoY revenue increase to RM539.8 million.
The bank's net interest income grew 15.8 per cent to RM464.7 million, driven by higher loans volume while net interest margin was at 2.45 per cent.
The non-interest income rose 15.7 per cent to RM75.1 million, primarily from higher wealth management income, foreign exchange sales and trade fees. Its cost-to-income ratio stood at 48.0 per cent.
Overall loans momentum continued with a 14.8 per cent growth, representing almost double that of the 7.9 per cent growth recorded in 1QFY2024.
"The positive performance was led by the bank's SME (17.1 per cent YoY), commercial (17.5 per cent YoY), corporate (9.7 per cent YOY) and consumer (14.0 per cent YoY) banking growth.
Alliance Bank said its funding was healthy, with customer deposits growing 11.6 per cent YoY. The CASA ratio remains one of the industry's highest at 41.5 per cent.
The 1QFY2025 net credit cost was 8.1 basis points while the bank's loan loss coverage ratio was at 111.6 per cent.
"The bank remains well-capitalised with a Common Equity Tier-1 ratio (CET 1) of 12.2 per cent and a total capital ratio of 16.4 per cent. In terms of liquidity position, Alliance Bank is resilient with a liquidity coverage ratio of 163.0 per cent and loan to fund ratio of 88.2 per cent.
Alliance Bank group chief executive officer Kellee Kam said its Acceler8 strategy continued to drive its overall growth and sustainability aspirations.
"As we achieve significant progress in all our eight growth pillars, we remain focused on providing tailored financial and non-financial solutions with exceptional service to become the preferred banking partner," he said in a statement today.
Alliance Bank said it had made substantial strides towards achieving its topline sustainability goals.
The bank's various initiatives have resulted in RM13.1 billion in cumulative new sustainable business since FY2022, with RM586.0 million achieved in the first quarter of FY2025.
"The bank continues to support businesses in their sustainability journey with a RM1 billion allocation for green receivables financing for SME suppliers participating in Bursa's Centralised Sustainability Intelligence solution," it said.