Kuala Lumpur, 22 May 2026 - Alliance Bank Malaysia Berhad (“Alliance Bank” or the “Bank”) reported resilient financial performance for the financial year ended 31 March 2026 (“FY2026”), supported by sustained business momentum, diversified income growth and continued execution of its Acceler8 strategy amid a more challenging global environment.
The Bank’s net profit after tax stood at RM826.5 million, representing a 10.1% year-on-year (“YOY”) increase, while revenue came in at RM2.47 billion, driven by growth in both net interest income (“NII”) and non-interest income (“NOII”). NII of RM2.01 billion was driven primarily by higher loan volumes, while the net interest margin (“NIM”) stood at 2.34%. NOII grew 42.0% YOY to RM459.2 million. The cost-to-income ratio for the year stood at 47.9% as the Bank continued its investments in people and technology.
Group Chief Executive Officer Kellee Kam said, “Our performance for FY2026 reflects the disciplined execution of our Acceler8 strategy and the resilience of our diversified business model. As we navigate global uncertainties, we are focused on leveraging our solid financial foundation to stand by our customers, support their transition journeys, and deliver responsible, long-term value to all stakeholders.
In FY2026, the Bank’s gross loans expanded 7.5% YOY, outpacing industry growth of 5.4%, supported by broad-based expansion across SME, commercial and consumer segments. Total gross loans and unrated bonds grew 9.0% YOY. SME loans increased 7.4% YOY, commercial loans grew 13.2%, while consumer loans expanded 9.0% YOY.
Customer deposits grew 8.8% YOY, supported mainly by fixed deposit growth, while the Bank maintained one of the highest CASA ratios in the industry at 37.5%. Asset quality remained resilient, with the Bank’s gross impaired loans (“GIL”) ratio improving to 1.73%, compared to 1.83% a year earlier. The Bank also maintained healthy liquidity and capital positions, with the liquidity coverage ratio (“LCR”) at 158.5%, while Common Equity Tier-1 (“CET1”) and total capital ratios strengthened to 13.2% and 17.6%, respectively.
In line with the Bank’s dividend policy, Alliance Bank proposed a second interim dividend of 9.74 sen per share, bringing the total dividend for FY2026 to 19.1 sen per share and translating to a dividend payout ratio of 40%.
Continued Progress Across Acceler8 2027 Priorities
Under the Acceler8 transformation strategy, Alliance Bank has strengthened its market presence and broadened its offerings to better serve the community:
- SME Banking: Market share rose to 5.44%.
- Consumer Loans: Continued to gain momentum, increasing market share to 2.35%.
- Corporate market share: Increased to 1.96%.
- Business banking client fee income up 8% YOY.
- Geographic Expansion: Regional franchises in Sabah, Sarawak, Penang, and Johor saw a sustained 7% YOY expansion in both loans and deposits.
- The launch of Menara Alliance Bank in January 2026.
- Islamic Banking: Continued to scale up its Halal in One programme, driving a 33% YOY growth in financing balances.
Advancing Sustainability Commitments
Alliance Bank continued to accelerate its sustainability agenda during FY2026 through financing, ecosystem collaborations and practical transition support for businesses. Since FY2022, the Bank has achieved cumulative RM16.0 billion in new sustainable banking business, progressing steadily towards its revised FY2028 target of RM17.0 billion. Under its Sustainability Impact Programme (“SIP”), the Bank achieved RM598 million in approved financing during FY2026, exceeding its annual target and bringing cumulative approved financing under the programme to RM1.80 billion.
The Bank continued to support customers through its “3As” approach of Advocacy, Advice and Answers, which combines financing solutions with sustainability advisory, ecosystem partnerships and enabling tools to support transition readiness. During the year, Alliance Bank launched the second edition of its ESG Survey Report focused on SMEs, followed by the inaugural Sarawak SME ESG Report, aimed at deepening the understanding of ESG adoption challenges and opportunities among businesses.
The Bank also launched its first sector-specific ESG playbook, titled “ESG Playbook: Practical Steps for Manufacturing SMEs”, together with strategic partners including Monash University Malaysia, UN Global Compact Network Malaysia & Brunei, Zurich Malaysia, Malaysian Plastics Manufacturers Association and Penang Green Council. In addition, more than 1,300 companies benefited from the Bank’s climate assessment tool, PROGRESS during FY2026.
Alliance Bank’s sustainability efforts continued to gain industry recognition during the year, including being named on the UN Global Compact Network Malaysia & Brunei ESG Select List 2025 as a 5-Star Lister and receiving the Forward Faster Sustainability Awards 2026 for Sustainable Supply Chain.
Throughout FY2026, Alliance Bank also continued to strengthen customer and community engagement through several flagship initiatives, including the Alliance Bank Business Conference 2025, the Alliance Bank Heritage Run and the Alliance Bank Borneo International Marathon. To continue supporting entrepreneurship and SME development across Malaysia, the Bank’s flagship BizSmart Challenge Accelerator Edition launched The Ultimate Elevator Pitch (the first SME business pitch film), which premiered on iQIYI & trended No.1 for 3 consecutive weeks. Alliance Bank’s SME and digital banking efforts were also recognised internationally, with the Bank being named Best SME Bank in Malaysia by The Digital Banker for the third consecutive year.
Supporting Customers in a Challenging Operating Environment
Amid geopolitical uncertainties and a challenging operating environment, businesses and individuals continued to face sustained pressures. Mindful of these conditions, the Bank remains focused on supporting customers through this period of heightened uncertainty.
Alliance Bank has proactively put in place targeted assistance measures and recently announced that it is accelerating its support for Malaysian businesses by participating in Bank Negara Malaysia’s (“BNM”) SME Stabilisation Relief Facility (“SME SRF”). This dedicated financing access is designed to assist small and medium enterprises ("SMEs"), including micro-enterprises, in navigating the economic challenges arising from the ongoing West Asia conflict.
This initiative complements Alliance Bank’s broader ecosystem of SME solutions, which are designed to address immediate liquidity needs and support business continuity. These include SME Express Financing, which provides swift access to collateral free working capital of up to RM500,000. Coupled with holistic advisory support and robust digital capabilities, the Bank remains focused on equipping SMEs with practical and timely solutions to strengthen resilience and drive sustainable growth.
The Bank also works closely with affected customers on a case by case basis to explore appropriate repayment flexibility or other relief options and encourages customers who anticipate difficulties to engage early with their relationship managers or through the Bank’s official customer service channels.
Financial Highlights for FY2026
- Revenue grew 8.6% YOY to RM2.47 billion
- Net interest income rose 3.1% YOY
- Net interest margin at 2.34%
- Gross loans grew 7.5% YOY
- CASA ratio stood at 37.5%
- Non-interest income grew 42.0% YOY to RM459.2 million
- Cost-to-income ratio was at 47.9%
- Net credit cost was at 33.5 bps, including RM185.0 million in pre-emptive provisions
- Net profit after tax at RM826.5 million
- Liquidity coverage ratio at 158.5%
- Capital position: CET1 ratio at 13.2%, Tier-1 at 14.6%, Total Capital Ratio at 17.6%
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