Alliance Bank posts 11% rise in 4Q profit, declares 9.9 sen dividend to cap record FY25
ALLIANCE Bank Malaysia Bhd posted an 11% rise in net profit to RM197.49 million for the fourth quarter ended March 31, 2025 (4Q25), from RM177.74 million a year earlier, supported by stronger net interest income and lower provisions.
Quarterly revenue increased to RM563.24 million from RM516.17 million, despite a slight drop in fee-based income.
For the full financial year (FY25), net profit climbed to RM765.52 million from RM690.48 million, with revenue growing to RM2.27 billion from RM2.02 billion.
Net interest income improved by RM226.4 million or 13.2% year-on-year, mainly driven by a 12% increase in loans, advances, and financing to RM62.4 billion.
The bank's net interest margin stood at 2.45%, slightly lower than 2.48% in FY24.
Operating expenses rose 11.8% to RM1.09 billion, with a cost-to-income ratio of 48.0%.
The bank declared a second interim dividend of 9.9 sen per share, bringing the total FY25 dividend to 19.4 sen, representing a 40% payout ratio or RM300.3 million.
Group CEO Kellee Kam credited the performance to the successful execution of the Acceler8 strategic plan, citing it as a reflection of the bank's long-term growth trajectory.
Alliance Bank also advanced its sustainability agenda, securing RM14.4 billion in sustainable banking business towards its RM15 billion target by FY2027.
Looking ahead, the bank remains cautious amid global uncertainties, including US-China trade tensions, but plans to continue upgrading its offerings, expanding lending prudently, and strengthening its risk management framework in FY26. — TMR
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