Kuala Lumpur, 27 May 2025 - Alliance Bank Malaysia Berhad (“Alliance Bank” or “the Bank”) delivered its strongest financial performance to date for the financial year ended 31 March 2025 (“FY2025”), with revenue climbing 12.3% year-on-year (YOY) to RM2.3 billion and net profit after tax rising 8.7% to a record RM750.7 million.
The Bank’s revenue growth was supported by improvements in both net interest income (“NII”) and non-interest income (“NOII”). NII rose by 13.2% YOY to RM1.95 billion, driven primarily by higher loan volumes, while the net interest margin remained one of the industry’s highest at 2.45%. NOII increased by 7.7% to RM323.4 million, mainly due to higher foreign exchange sales and trade fees, wealth management income (excluding the one-time Bancassurance business model fee recognised in FY2024), and treasury and investment income. The cost-to-income ratio for the year stood at 48% as the Bank continued its investments in technology and people.
Total gross loans expanded by 12% YOY to RM62.4 billion, more than double the industry growth of 5.2%. Growth was broad-based across all segments: SME (10.6%), Commercial (15.8%), Corporate (8.4%), and Consumer (12.6%). The CASA ratio remained among the highest in the industry at 41%, supported by a 14.7% YOY increase in customer deposits.
The Bank maintained robust capital and liquidity positions, with a Common Equity Tier-1 (CET1) Ratio of 12.2%, Tier-1 Capital Ratio of 13.4%, and Total Capital Ratio of 16.7%. Liquidity Coverage Ratio stood at 171.6% and Loan-to-Fund Ratio at 85.6%. Net credit cost, including pre-emptive provisions, was 31.9 basis points.
The Bank’s CET1 will be further strengthened following the proposed rights issue in July to raise RM600 million in fresh capital which remains subject to shareholders and regulatory approvals.
Alliance Bank has proposed a second interim dividend of 9.9 sen per share, bringing the total dividend for FY2025 to 19.4 sen per share and resulting in a 40% total dividend payout ratio, amounting to RM300.3 million.
Strong Execution of the Acceler8 Strategy Fuels Continued Growth
Under the Acceler8 transformation strategy, Alliance Bank has strengthened its market presence and broadened its offerings:
- SME Banking: Market share rose to 5.39% (from 5.19%) with fee income up 9% YOY.
- Consumer Loans: Grew at twice the industry rate, increasing market share to 2.27%.
- Geographic Expansion: Sarawak, Penang, and Johor saw loan growth of 14% and deposit growth of 22%.
- Capital Markets: Revenue surged 116% YOY, driven by corporate finance deals.
- Islamic Banking: Revenue up 24% YOY, led by growth in the Halal in One financing programme
The Bank is also advancing its sustainability agenda, achieving RM14.4 billion in new sustainable banking business as of FY2025, progressing towards its RM15 billion target by FY2027. Collaborating with Bursa Malaysia, the Bank launched the Sustainability Enhancement Programme to assist ACE market-listed companies with ESG reporting. Additionally, the Sarawak SME ESG report was launched in Kuching by the Sarawak Premier YAB Datuk Patinggi Tan Sri Abang Johari Tun Abang Openg.
“Our record-breaking results for FY2025 reflect the successful execution of our Acceler8 strategy and reinforces our longer-term growth trajectory,” said Mr. Kellee Kam, Group Chief Executive Officer of Alliance Bank. “We remain focused on sustainable growth and creating long-term value for all our stakeholders”.
Financial Highlights for FY2025
- Revenue grew 12.3% YOY to RM2.3 billion
- Net interest income rose 13.2% YOY
- Net interest margin at 2.45%
- Overall loans grew 12% YOY, more than double the industry
- CASA ratio stood at 41%, one of the highest in the industry
- Non-interest income grew 7.7% YOY to RM323.4 million
- Cost-to-income ratio was at 48%
- Net credit cost was at 31.9 bps
- Net profit after tax at RM750.7 million
- Liquidity coverage ratio at 171.6%
- Capital position: CET1 ratio at 12.2%, Tier-1 at 13.4%, Total Capital Ratio at 16.7%
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