KUALA LUMPUR: Alliance Bank Malaysia Berhad has reported a record-breaking financial performance for the financial year ended 31 March 2025 (FY2025), driven by strong loan growth across all segments and the successful execution of its Acceler8 transformation strategy.
Revenue surged 12.3% year-on-year (YoY) to RM2.3 billion, while net profit after tax rose 8.7% to an all-time high of RM750.7 million. This marks the Bank’s highest earnings to date.
The robust performance was underpinned by a 13.2% YoY increase in net interest income (NII) to RM1.95 billion, propelled by higher loan volumes. The Bank also maintained one of the industry’s leading net interest margins at 2.45%. Meanwhile, non-interest income (NOII) rose by 7.7% to RM323.4 million, supported by stronger contributions from foreign exchange and trade fees, wealth management, and treasury income.
Outperforming Industry Loan Growth
Total gross loans expanded 12% YoY to RM62.4 billion, more than double the industry average of 5.2%. The growth was broad-based across all segments, including:
-
SME loans: up 10.6%
-
Commercial loans: up 15.8%
-
Corporate loans: up 8.4%
-
Consumer loans: up 12.6%
Deposits increased by 14.7% YoY, with the CASA (current account savings account) ratio holding strong at 41%, one of the highest in the sector.
The Bank’s cost-to-income ratio stood at 48%, reflecting ongoing investments in technology and talent.
Solid Capital and Liquidity Position
Alliance Bank maintained robust capital buffers, with a:
-
Common Equity Tier-1 (CET1) Ratio of 12.2%
-
Tier-1 Capital Ratio of 13.4%
-
Total Capital Ratio of 16.7%
-
Liquidity Coverage Ratio of 171.6%
-
Loan-to-Fund Ratio of 85.6%
-
Net credit cost of 31.9 basis points (including pre-emptive provisions)
To further strengthen its capital base, the Bank is proposing a RM600 million rights issue in July, pending shareholder and regulatory approval.
A second interim dividend of 9.9 sen per share has been declared, bringing the total FY2025 dividend payout to 19.4 sen per share, or RM300.3 million — a 40% payout ratio.
Acceler8 Strategy Powers Momentum
Under its Acceler8 strategy, Alliance Bank made notable advances:
-
SME market share rose to 5.39% from 5.19%, with fee income up 9% YoY
-
Consumer loans grew at twice the industry rate, pushing market share to 2.27%
-
Capital markets revenue more than doubled (+116% YoY), buoyed by corporate finance activity
-
Islamic banking revenue rose 24% YoY, driven by the Halal in One financing programme
-
Geographical expansion in Sarawak, Penang, and Johor yielded 14% loan and 22% deposit growth
On the sustainability front, the Bank reported RM14.4 billion in new sustainable banking business, advancing towards its RM15 billion target by FY2027. Collaborations with Bursa Malaysia also resulted in the launch of the Sustainability Enhancement Programme, supporting ACE Market-listed companies in ESG reporting. The Bank also released the Sarawak SME ESG Report, officiated by 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 reinforce our longer-term growth trajectory,” said Kellee Kam, Group Chief Executive Officer. “We remain focused on sustainable growth and creating long-term value for all our stakeholders.”
