Alliance Bank Enters Final Phase of Acceler8

Kuala Lumpur, 29 July 2026 - Alliance Bank Malaysia Berhad (“Alliance Bank” or “the Bank”) held its 44th Annual General Meeting (“AGM”) today and updated shareholders on its financial performance for the financial year ended 31 March 2026 (“FY2026”). The Bank’s four-year transformation strategy, “Acceler8 2027”, has entered its final phase, continuing to deliver disciplined and scalable growth across all business segments.

Since embarking on Acceler8 in January 2023, Alliance Bank has grown while reinvesting its stronger earnings back into the franchise — across people, technology, brand, infrastructure and capital. As we head into the final stretch of the transformation programme, total assets rose from RM61.8 billion (in FY2022) to RM92.2 billion, net profit from RM573 million to a record RM826.5 million, and market capitalisation from RM5.8 billion to RM8.34 billion as at 31 March 2026, while overall loan market share expanded from 2.4% to 2.8%. Importantly, this reflects not a one-off performance uplift, but the building of a stronger and more sustainable platform for future growth.

Acceler8 Delivers Consistent, Measurable Results
Kellee Kam, Group Chief Executive Officer of Alliance Bank, said, “The success of our Acceler8 strategy is most clearly reflected in the value we have created, with our market capitalisation reaching RM8.34 billion as at 31 March 2026.

We navigated margin pressures – driven in part by a declining Overnight Policy Rate (“OPR”) — by innovating around our customers and decisively scaling our small and medium enterprise ('SME') and Islamic banking franchises. We did so against a demanding external backdrop of tariff-related uncertainties, geopolitical tensions and broader macroeconomic volatility that continued to test the resilience of businesses and consumers alike. I am equally proud that, as we drive this financial momentum, we have achieved RM16.0 billion in cumulative new sustainable banking business since FY2022 and remain on track towards our RM17.0 billion target, proving that responsible banking is good business. There is still more to do, but we now build from a fundamentally stronger position.”

The stronger financial performance was matched by deeper customer trust. Over the transformation period, the Bank’s loans grew at a compound annual rate of approximately 11% — close to twice the industry’s pace — while its Net Promoter Score rose to a record high, reflecting customers’ growing willingness to recommend the Bank. Under Acceler8, Alliance Bank has strengthened its position as a diversified financial institution and broadened its growth engines, delivering measurable outcomes across its strategic pillars. Reflecting this momentum, gross loans, advances and financing grew 7.5% year-on-year (“YOY”) to RM67.15 billion.

SME – anchoring the franchise. Growth was led by the SME segment, where loans grew 7.4% YOY. The Bank scaled its sales capacity and equipped relationship managers with enhanced digital tools to serve a broader customer base. Its Digital SME Loan Application Platform remained a cornerstone, providing faster credit decisions and a seamless experience, while the BizSmart® Mobile platform was further enhanced with new automated features, including auto-tagging for loan and credit card accounts and the introduction of the e-Service Request Form (“e-SRF”). Complementing its lending momentum, the Bank continued to provide ecosystem-based solutions, including participation in Bank Negara Malaysia’s SME Stabilisation Relief Facility. Through collaborations with Credit Guarantee Corporation (“CGC”) and Syarikat Jaminan Pembiayaan Perniagaan Berhad (“SJPP”), the Bank continued to expand access to collateral-free financing for SMEs. Flagship initiatives such as the BizSmart® Challenge Accelerator Edition and BizSmart® Business Conference continued to empower entrepreneurs and support business growth. In recognition of this franchise strength, the Bank was named Best SME Bank in Malaysia for the third consecutive year (2024, 2025 and 2026) by The Digital Banker, alongside further accolades including Malaysia’s Best Digital Bank for SMEs at the Euromoney Awards for Excellence 2025 and Best SME Commercial Bank 2025 at the FinanceAsia Awards.

Commercial & Corporate – deepening relationships. The Bank further strengthened its position as the banking partner of choice for businesses across their lifecycle, supporting start-ups and accompanying larger enterprises in pursuing their growth ambitions. Stronger transaction banking and advisory relationships supported growth in business banking client fee income. In the corporate and capital market segments, the Bank strengthened client coverage and intensified account planning to deepen relationships and support customers’ growth ambitions.

Consumer – disciplined, quality-led growth. Consumer loans expanded 9.0% YOY, driven by a disciplined focus on young professionals and the emerging affluent. Alliance Bank’s Virtual Credit Card (“VCC”) remained a significant growth driver, surpassing 90,000 cards issued since launch. Instant issuance accelerated adoption, expanding the credit card customer base by 25% YOY, with over 70% of new sign-ups aged below 40.

Modernising the franchise. Underpinning this growth, the Bank reinvested to modernise its technology and strengthen the franchise, including a new Retail Loan Origination System and a Wealth Management System, with a new mobile application to follow. The Bank also deepened its digital and embedded-finance capabilities, including a Bank Statement Analyser supporting fraud detection and credit scoring for small businesses, and partnerships with leading ecosystems such as Touch ‘n Go to deliver banking solutions through channels customers already use.

Regional franchise. Alliance Bank’s franchises in Penang, Johor, Sabah and Sarawak recorded approximately 7% YOY growth in both loans and deposits, reinforcing the strength of the Bank’s regional presence.

Islamic banking. The Islamic banking franchise continued to scale, with the Halal in One (“HiO”) programme supporting growth in financing balances and sustainability solutions within the Bank’s Islamic offerings. The Alliance Islamic Bank Zakat Microfinancing Programme (“AZAM”) continued to uplift asnaf micro-entrepreneurs, underscoring the Bank’s ability to create meaningful community impact. The Bank also supported companies seeking access to Malaysia’s equity capital markets, serving in advisory, sponsorship, underwriting and placement roles.

People. Recognising that transformation is delivered by people, the Bank continued to strengthen its employer proposition. Its 2026 sustainable engagement scores surpassed global high-performing benchmarks, while retention of high performers remained consistently above 90%. Alliance Bank was also named first runner-up in the banking sector at Malaysia’s 100 Leading Graduate Employers Awards 2025.

Brand. The Bank’s refreshed ‘The Bank For Life’ positioning strengthened its visibility and connection with customers, earning the Bank its first-ever Silver at the 2025 Putra Aria Brand Awards — a consumer-voted recognition based on trust and recommendation.

Sustainability. The Bank achieved RM16.0 billion in cumulative new sustainable banking business since FY2022, reaching its original RM15 billion target a year ahead of schedule. Building on this strong momentum, the Bank revised its ambition upwards to RM17 billion by FY2028. The Sustainability Impact Programme (“SIP”) contributed to this growth, surpassing its annual target by facilitating RM598 million in approved financing. To translate environmental objectives into pragmatic implementation strategies for its clients, the Bank launched the “ESG Playbook: Practical Steps for Manufacturing SMEs”. In recognition of its leadership, Alliance Bank was named a 5-Star Lister on the ESG Select List 2025 by the UN Global Compact Network Malaysia, Brunei & Cambodia (“UNGCMBC”), and maintained its 4-star FTSE4Good ESG rating. Furthermore, the January 2026 launch of Menara Alliance Bank — a Green Mark- and LEED-certified building — marked the Bank’s long-term commitment to sustainable and scalable growth.

FY2026 Financial Performance
The Bank’s strengthening fundamentals were externally validated in FY2026, when RAM Ratings upgraded the financial institution ratings of Alliance Bank and Alliance Islamic Bank Berhad (“Alliance Islamic”) to AA3/Stable/P1 from A1/Positive/P1, with the long-term ratings of both institutions’ sukuk and debt facilities also upgraded. The upgrades reflect confidence in the Bank’s solid asset quality, market-leading position in SME financing, sound funding profile and healthy net interest margins (“NIMs”).

Alliance Bank recorded net income of RM2.47 billion, an 8.6% YOY increase, driven by net interest income (“NII”) of RM2.01 billion and a 42.0% rise in non-interest income (“NOII”) to RM459.2 million. Net profit after tax (“NPAT”) reached a record RM826.5 million, up 10.1% YOY. Return on equity (“ROE”) stood at 10.2%, while the cost-to-income ratio was 47.9%, reflecting ongoing investments in talent, technology, regional expansion and product innovation. Asset quality remained strong, with the gross impaired loans (“GIL”) ratio improving to 1.73% from 1.83% a year earlier. Net credit cost was 33.5 basis points, including pre-emptive provisions for geopolitical tensions; total pre-emptive provisions stood at RM185.0 million at year-end, reflecting prudent risk management. The balance sheet was further strengthened, with the Common Equity Tier-1 (“CET1”) ratio strengthening to 13.2% and the total capital ratio rising to 17.6%. Customer deposits grew 8.8% YOY, and the Bank maintained one of the highest CASA ratios in the industry at 37.5%. A total dividend of 19.1 sen per share was declared, translating into a 40% payout ratio.

Kam said, “Our FY2026 performance reflects the disciplined execution of our Acceler8 strategy and the resilience of our diversified business model. Amid a challenging operating environment marked by global geopolitical uncertainties, margin pressures and evolving stakeholder expectations, we leveraged our strong financial fundamentals to deliver responsible, long-term value. Guided by our commitment to being The Bank For Life, we continued to invest prudently in strengthening our capabilities, enhancing our customer propositions and building a future-ready organisation.”

Beyond FY2027
Kam noted that the banking landscape is changing rapidly — becoming more embedded, data-driven and ecosystem-based, with artificial intelligence powering greater personalisation and automation, and with trust, purpose and sustainability increasingly central to success.

“The momentum we have built over the last three years provides a strong foundation for our ambitions beyond Acceler8. Our priority is to combine advanced digital capabilities with our human-centric ESG values. By deepening ecosystem partnerships and leveraging data-driven insights, we aim to capture new market opportunities and enhance the value we create for our customers, shareholders and other stakeholders.”

While delivering the final milestones of Acceler8, we are already laying the foundations for our next transformation horizon — investing in cloud adoption, data and analytics, next-generation technology modernisation and AI-powered capabilities. These are not merely efficiency measures; they are about building a future-ready organisation that can respond faster to customer needs, scale more effectively and compete with greater confidence in an increasingly digital world. We enter this next chapter from a position of strength and remain confident in our ability to sustain profitable growth and deliver lasting value for all our stakeholders,” Kam concluded.