Kuala Lumpur, 25 February 2026 - Alliance Bank Malaysia Berhad (“Alliance Bank” or “the Bank”) today reported a 12.2% year-on-year (YOY) increase in net profit after tax to RM620.5 million for the nine months ended 31 December 2025 (“9MFY2026”) driven by sustained loan growth, stronger non-interest income, and disciplined cost management. Total revenue rose 9.8% YOY to RM1.87 billion.
The Bank registered a record net profit of RM215.2 million for the third quarter ended 31 December 2025 (3QFY2026), up 4.2% quarter-on-quarter and 15.3% YOY. This is the Bank’s highest‑ever quarterly net profit.
In the 9MFY2026, the Bank’s net interest income grew 3.5% YOY to RM1.50 billion, supported by higher loan volumes across key segments, while the net interest margin (NIM) stood at 2.36%. Non-interest income expanded significantly by 45.3% YOY to RM372.3 million, underpinned by higher wealth management fees, stronger foreign exchange sales and trade-related fees, and treasury and investment income. The Bank’s cost-to-income ratio (CIR) remained healthy at 46.7%, reflecting continued investments in people and technology alongside prudent expense management.
Gross loans increased by 7.9% YOY. Consumer mortgages grew 10.5% YOY, SME loans rose 6.8%, and commercial loans increased 15.1%. Customer deposits expanded by 10.4% with the Bank registering a CASA ratio of 38.0%.
The Bank’s net credit cost remained stable at 30.7 basis points (bps), while loan loss coverage improved to 118.4%. Asset quality continued to strengthen, with the gross impaired loans (GIL) ratio improving YOY to 1.89% from 1.97% in December 2024. Liquidity and capital positions remained robust, with the Liquidity Coverage Ratio (LCR) at 159.3%, compared with the industry average of 154.8%. Capital ratios were further strengthened following the completion of the Bank’s RM400 million capital raising exercise in November 2025, with Common Equity Tier 1 (CET-1) and total capital ratios at 13.1% and 17.6% respectively.
“Our 9MFY2026 performance reflects the disciplined execution of our ACCELER8 2027 strategy, delivering quality loan growth, diversified income streams, and resilient risk management outcomes,” said Mr. Kellee Kam, Group Chief Executive Officer of Alliance Bank. “We continue to make solid progress across our strategic priorities, including SME expansion, strengthening consumer lifecycle propositions, driving growth in key Malaysian states, advancing sustainability financing, and deepening our Islamic banking franchise. While global uncertainties persist, Malaysia’s positive GDP outlook provides a supportive environment for us to remain focused on innovation and meeting our customers’ evolving needs.”
ACCELER8 2027 Strategy Continues to Deliver Steady Progress
Under its ACCELER8 2027 transformation strategy, Alliance Bank continues to advance its ambition to be The Bank For Life, achieving consistent progress across key growth pillars.
During 9MFY2026, the Bank recorded broad-based momentum across SME, consumer, and commercial segments, supported by strengthened propositions and deeper customer engagement. The Islamic banking business also delivered encouraging growth, driven by expanding halal ecosystem initiatives and tailored offerings for SME customers.
Championing Our Sustainability Commitments
Since FY2022, the Bank has achieved a cumulative RM15.9 billion in new sustainable banking business, surpassing its original RM15.0 billion target by FY2027. Following this positive trajectory, the target has been revised to RM17 billion by FY2028.
For 9MFY2026, sustainability financing reached RM1.54 billion year-to-date, reflecting the Bank’s continued commitment to supporting clients’ transition towards more sustainable business practices. Alliance Bank’s Corporate Supply Chain Programme continues to build strong momentum through our partnership with UN Global Compact Network Malaysia & Brunei (UNGCMYB). In 3QFY2026, the Bank supported several corporates across the real estate, transport and plantation industries in decarbonising their supply chains and improving access to transition capital.
On 5 November 2025, Alliance Bank introduced the Innovation Impact Lab with Monash University and Cradle Fund to help businesses tackle real‑world challenges and scale sustainably. The Lab develops and tests commercially viable, tech‑driven solutions focused on technology, waste management, and the circular economy. This first‑of‑its‑kind collaboration between government, academia, and a financial institution further enhances our SME value proposition, beyond just traditional banking.
Key Results
- Revenue: RM1.87 billion (+9.8% YOY)
- Net interest income: RM1.50 billion (+3.5% YOY); NIM 2.36%
- Non-interest income: RM372.3 million (+45.3% YOY)
- Cost-to-income ratio: 46.7%
- Gross loans: RM65.8 billion (+7.9% YOY)
- Customer deposits: RM68.1 billion (+10.4% YOY)
- Net credit cost: 30.7 bps
- Gross impaired loans ratio: 1.89%
- Net profit after tax: RM620.5 million (+12.2% YOY)
- Liquidity coverage ratio: 159.3%
- Capital position: Common Equity Tier-1 ratio at 13.1% and the total capital ratio at 17.6%
###
