Kuala Lumpur, 26 August 2026 - Alliance Bank Malaysia Berhad (“Alliance Bank” or the “Bank”) today reported a 25.0% year-on-year (“YOY”) increase in net profit after tax to RM248.3 million for the first quarter ended 30 June 2026 (“1QFY2027”), driven by broad-based loan growth, higher client-based fee income, a significantly lower net credit cost following better credit performance and recoveries from its corporate portfolio.
Total revenue rose 2.5% YOY and 6.4% quarter-on-quarter (“QOQ”) to RM630.9 million, driven by growth in both net interest income (“NII”) and non-interest income (“NOII”). NII expanded 2.5% YOY to RM511.7 million, driven primarily by higher loan volumes, with the net interest margin (“NIM”) standing at 2.26%. NOII rose 2.5% YOY to RM119.2 million, as Group wealth management fees climbed 46.6% YOY and banking services fees grew 75.8% YOY. Operating expenses increased 7.8% YOY on ongoing strategic investments in technology and talent under the Acceler8 strategy, bringing the cost-to-income ratio to 47.4%, within the Bank’s FY2027 guidance range and an improvement on the 47.9% recorded for FY2026.
In 1QFY2027, the Bank’s gross loans expanded 8.1% YOY to RM67.81 billion, while total gross loans and unrated bonds grew 9.5% YOY to RM69.33 billion, outperforming industry loan growth. Expansion was broad-based across segments, with commercial loans growing 19.1% YOY, corporate loans and unrated bonds rising 12.7% YOY, consumer loans increasing 7.8% YOY and SME loans expanding 6.4% YOY. Total assets grew 13.2% YOY to RM95.8 billion.
Customer deposits grew 8.4% YOY to RM70.5 billion, while the Bank maintained one of the highest CASA ratios in the industry at 37.7%. Asset quality remained manageable, with the gross impaired loans (“GIL”) ratio improving to 1.83% from 1.96% a year earlier. Net credit cost improved to 0.3 basis points from 14.4 basis points in 1QFY2026, driven by corporate recoveries, while the SME, commercial and consumer portfolios continued to demonstrate resilience, reflecting the Bank’s sound overall asset quality. The loan loss coverage ratio stood at 112.9%. The Bank continues to maintain sound liquidity and capital positions, with the liquidity coverage ratio (“LCR”) at 129.3%, loan-to-fund ratio at 87.7%, net stable funding ratio at 116.3%, Common Equity Tier-1 (“CET1”) ratio at 13.0% and Total Capital Ratio at 17.4%.
Group Chief Executive Officer Kellee Kam said, “Our performance in 1QFY2027 reflects the momentum of our Acceler8 strategy and our ability to capture high-quality growth across core segments. Amidst global volatility and supply chain pressures, we remained resilient, supported by the country’s strong fundamentals. Notwithstanding the positive momentum, we remain cautious as we navigate the environment, while continuing to achieve market share gains in SME and consumer banking and sustained momentum across our regional franchises. As we enter the final stretch of Acceler8, we remain focused on investing prudently in our people, technology and capabilities, deepening customer relationships and delivering responsible, long-term value to all our stakeholders.”
Ongoing delivery across Acceler8 2027 priorities
Under the Acceler8 transformation strategy, Alliance Bank has deepened customer relationships and strengthened its market presence across key business pillars:
- SME Banking: Market share expanded to 5.6% with total SME loans growing 8.6% YOY to reach RM23.5 billion, outpacing the industry’s growth.
- Consumer Banking: Consumer loans maintained strong expansion with a 7.8% YOY growth, holding market share at 2.4%.
- Business Banking Client Fees: Wealth management fees increased 14.0% YOY while trade fees grew 3.3% YOY.
- Geographic Expansion: In 1QFY2027, regional loans expanded 8.4% YOY led by Penang and Sarawak, while regional deposits grew 7.4% YOY propelled by Penang and Johor.
- Islamic Banking: Scaled up its Halal-in-One proposition, driving >20% YOY growth in financing balances.
- Corporate and Capital Market Business: Continued to deepen client relationships and strengthen deal execution, contributing RM45.4 million in corporate and capital market revenue for the quarter.
Accelerating Sustainability Initiatives
Alliance Bank continued to accelerate its sustainability agenda during 1QFY2027 through sustainable financing, ecosystem collaborations and practical transition support. Since FY2022, the Bank has achieved a cumulative RM16.6 billion in new sustainable banking business (“NSB”), reaching 97.0% of its FY2028 target of RM17.0 billion. Under its Sustainability Impact Programme (“SIP”), the Bank approved RM176 million during the quarter, bringing total cumulative approved financing under the programme close to RM2.0 billion.
To support business decarbonisation across value chains, Alliance Bank formalised a Memorandum of Understanding (“MOU”) with PETRONAS under its Sustainable Vendor Financing Programme (“SVFP”). The Bank also launched RANTAiX in collaboration with UN Global Compact Network Malaysia, Brunei and Cambodia (“UNGCMBC”), building on its previous climate assessment tool, PROGRESS, to drive environmental, social and governance (“ESG”) adoption across the supply chain through a more holistic ESG evaluation platform.
Alliance Bank’s sustainability efforts earned prominent industry recognition during the quarter, including ESG Programme of the Year and Strategic Partnership of the Year at the Asian Banking & Finance Awards, while Menara Alliance Bank achieved LEED Silver certification.
Empowering SMEs and Expanding Ecosystem Partnerships
To reinforce its strategic positioning as a core growth partner for local businesses, Alliance Bank expanded its ecosystem alliances during the quarter to address critical SME operational and financing needs. The Bank launched the BizSmart® Challenge Accelerator Edition 2026 to scale Malaysia’s next breakout brands, providing high-potential enterprises with a prize pool of up to RM2 million.
Additionally, the Bank expanded its portfolio guarantee partnership with Credit Guarantee Corporation Malaysia Berhad (“CGC”) to unlock RM2 billion in dedicated financing, lowering collateral barriers for growing SMEs nationwide. Complementing its direct credit facilities, Alliance Bank collaborated with 99 Speed Mart to offer business clients 0% interest instalment options on commercial bulk purchases, providing immediate working capital relief and enhancing daily liquidity management.
Championing Organisational Excellence
Complementing its commercial momentum, the Bank secured the overall title of Employee Experience Champion of the Year at the Employee Experience Awards Malaysia 2026, alongside apex recognitions for the Overall Leadership Award and Overall Engagement Award. These achievements underline an ongoing commitment to workplace culture, talent development and HR digital transformation, building a high-performance organisation fully aligned with its Acceler8 strategy.
Financial Highlights for 1QFY2027
- Total revenue grew 2.5% YOY to RM630.9 million
- Net interest income rose 2.5% YOY to RM511.7 million
- Net interest margin stood at 2.26%
- Non-interest income grew 2.5% YOY to RM119.2 million
- Cost-to-income ratio stood at 47.4%
- Gross loans and unrated bonds expanded 9.5% YOY
- Customer deposits grew 8.4% YOY to RM70.5 billion
- CASA ratio maintained at an industry-leading 37.7%
- Gross impaired loans ratio improved YOY to 1.83%
- Net credit cost improved to 0.3 bps
- Net profit after tax grew 25.0% YOY to RM248.3 million
- Annualised Return on Equity (ROE) reached 11.3%
- Capital position: CET1 ratio at 13.0%, Total Capital Ratio at 17.4%
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