Alliance Bank Malaysia Bhd Reports Strong Financial Performance for 9M’25

Stay connected with BizTech Community—follow us on Instagram and Facebook for the latest news and reviews delivered straight to you.

Financial Highlights:

• Net Profit Growth: Alliance Bank Malaysia Bhd recorded a net profit after tax of RM553.2 million for the nine months ended Dec 31, 2024 (9M’25), marking a 7.9% year-on-year (y-o-y) increase.
• Net Interest Income: Increased 13.9% y-o-y, driven by higher loan volumes, with net interest margin at 2.46%.
• Non-Interest Income: Grew 11% y-o-y to RM256.3 million, supported by higher wealth management income, foreign exchange sales, trade fees, and treasury & investment income.

Efficiency and Loan Growth:

• Cost-to-Income Ratio: Improved to 46.8%, as revenue growth of 13.5% y-o-y outpaced the 10.1% increase in operating expenses.
• Loan Expansion: Overall loans grew 14.2% y-o-y to RM61 billion, with notable growth across core segments:
  • SME Loans: 14.1% increase
  • Commercial Loans: 16.8% increase
  • Consumer Banking Loans: 13.8% increase
  • Corporate Loans: 13.5% increase

Funding and Capital Position:

• Customer Deposits: Increased 13.3% y-o-y, with fixed deposits growing 26.1% y-o-y.
• CASA Ratio: Moderated to 39.4%, still among the highest in the industry.
• Net Credit Cost: 30.6 bps, with a prudent pre-emptive provision of 8.2 bps.
• Loan Loss Coverage: Maintained at 110.9%.
• Capital Ratios:
  • CET 1 Ratio: 12.4%
  • Tier-1 Capital Ratio: 13.6%
  • Total Capital Ratio: 17.0%
• Liquidity Position:
  • Liquidity Coverage Ratio: 152.1%
  • Loan to Fund Ratio: 88.4%

Sustainability Goals:

• Cumulative new sustainable business reached RM14 billion, progressing towards the RM15 billion FY27 target.

Alliance Bank continues to demonstrate strong financial resilience, underpinned by solid loan growth, robust funding, and strategic investments in technology and people.