Kuala Lumpur, 27 August 2025 - Alliance Bank Malaysia Berhad (“Alliance Bank” or the “Bank”) today reported a 12.5% growth in net profit after tax year-on-year (“YOY”) to RM198.7 million for the first quarter of the financial year of 2026 (“1QFY2026”). This was on the back of a 14% YOY revenue growth to RM615.3 million.
The Bank’s net interest income grew 7.4% YOY from RM464.7 million to RM499.0 million, driven by higher loans volume, while net interest margin stood at 2.42%. Non-interest income rose 54.9% to RM116.3 million, primarily from higher foreign exchange sales and trade fees, strong treasury and investment income, and increased banking service fees. The Bank’s cost-to-income ratio improved to 45.1 (from 51.6% in 4QFY2025 and 48.0% in 1QFY2025).
Overall loans momentum continued with a 9.9% YOY growth, with broad-based expansion across all business segments. SME loans rose 9.6%, consumer loans increased 11.2%, commercial loans were up 10.9%, and corporate loans recorded a 3.3% increase. Customer deposits strengthened by 12.5% YOY while maintaining one of the highest CASA ratios in the industry at 38.0%.
The 1QFY2026 net credit cost stood at 14.4 basis points, reflecting prudent provisioning, while the Bank’s loan loss coverage ratio remained healthy at 113.3%. The Bank remains well-capitalised with a Common Equity Tier-1 ratio (“CET1”) of 12.4% and a total capital ratio of 16.9%. Liquidity coverage ratio was 162.6%, with a loan fund ratio at 87.2%.
Acceler8 2027 Strategy at Midpoint Delivers Across Segments
Now at the midpoint of its five-year Acceler8 2027 transformation journey, Alliance Bank continues to deliver market share gains and sustainable growth across its eight strategic pillars. The strategy, launched in January 2023, has strengthened the Bank’s position as The Bank For Life, with progress tracking ahead of plan in most focus areas.
In 1QFY2026, the Bank maintained double-digit loan growth and expanded overall loan market share to 2.73% (June 2024: 2.61%). SME market share advanced to 5.32%, while business banking client fee income rose 17% YOY. Consumer loans rose 11.2% YOY, with market share climbing to 2.29% driven by strong mortgage and credit card growth.
The Bank strengthened its regional presence in key economic corridors of Johor, Penang, Sarawak and Sabah. Total loans and deposits in these regions rose 11% and 14% YOY respectively, with Sarawak leading loan growth at 13% YOY and Penang posting an impressive 33% YOY deposit growth.
The Islamic banking business recorded a 10% YOY revenue increase, supported by the continued expansion of the flagship Halal in One programme. The capital markets revenue surged by 86% YOY, driven by robust corporate finance deals.
Advancing Sustainability Commitments
The Bank continues to make significant strides as an ESG-driven organisation, delivering positive impact and advancing its sustainability agenda. As of the first quarter of FY2026, Alliance Bank has achieved a cumulative RM14.9 billion in new sustainable banking business, keeping it on track to meet its RM15.0 billion target by FY2027 - one year ahead of schedule.
Through the Sustainability Impact Programme (SIP), the Bank approved RM207 million in loans during 1QFY2026 and expanded its Low Carbon Transition Facility (LCTF) to finance a broader range of green initiatives beyond solar projects, including energy efficiency, green buildings, and electric vehicles. Additionally, the Bank provided RM88.4 million in financing under the Corporate Green Power Purchase Programme in collaboration with LBS Bina Holdings.
These initiatives underscore Alliance Bank’s commitment to supporting businesses and communities in transitioning toward a low-carbon economy while driving long-term value creation for stakeholders.
“The outcomes we have achieved at the midpoint of our Acceler8 2027 transformation reflects the discipline, agility and focus of our teams across the Bank. Our continued market share gains, especially in SME and consumer banking, and the stronger growth beyond Klang Valley, underline the strength of our customer-led approach. Achieving our sustainable banking targets ahead of schedule is a testament to how ESG principles are deeply embedded in the way we do business. We will build on this momentum to extend our reach, deepen customer relationships and deliver innovative solutions that create greater value for our stakeholders,” said Mr. Kellee Kam, Group Chief Executive Officer of Alliance Bank.
Financial Highlights for 1QFY2026
Key Results
- Revenue grew 14.0% YOY to RM615.3 million
- Net interest income grew 7.4% YOY to RM499.0 million
- Net interest margin at 2.42%
- Overall loans expanded 9.9% YOY
- CASA ratio at 38.0% (one of the highest in the industry)
- Non-interest income grew 54.9% YOY to RM116.3 million
- Cost-to-income ratio at 45.1%
- Net credit cost at 14.4 basis points
- Net profit after tax at RM198.7 million
- Liquidity coverage ratio at 162.6%
- Capital position: CET1 ratio at 12.4%, total capital ratio at 16.9%
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