Alliance poised to ramp up customer acquisition
PETALING JAYA: Analysts have maintained their outperform call with a lower target price of RM4.85 for Alliance Bank Malaysia Bhd (ABMB), following its recently completed rights issue exercise.
Kenanga Research told clients in a report it believes that the proceeds from the exercise would enable the group to ramp up its customer acquisition efforts.
It has cut its financial year ending March 31, 2026 (FY26) earnings by 8%, reflecting lower net interest margins from the recent 25 basis points (bps) overnight policy rate cut and aligned its credit cost assumptions to 35 bps from 31, being the upper range of guidance.
Citing a recent meeting with the lender, Kenanga Research noted that the group presented a FY26 loans growth guidance of 8% to 10% which is below the 12% achieved in FY25.
The research firm said its model assumptions are conservatively kept at around 8% in line with the lower band of guidance.
The group's recently completed rights issue generated cash proceeds of RM600mil in capital to fuel its growth strategies.
'We gather that ABMB is likely deploying across all markets as opposed to accelerating its position in a specific market.
'Amid macro-economic challenges, we opine the bank may benefit from a larger collateralised portfolio (mortgage) as delinquency risks may emerge from its commercial segment, namely from small medium enterprises which are 34% of its loan book.'
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Alliance poised to ramp up customer acquisition
Kenanga Research noted that the group presented a FY26 loans growth guidance of 8% to 10%. PETALING JAYA: Analysts have maintained their outperform call with a lower target price of RM4.85 for Alliance Bank Malaysia Bhd (ABMB), following its recently completed rights issue exercise. Kenanga Research told clients in a report it believes that the proceeds from the exercise would enable the group to ramp up its customer acquisition efforts. It has cut its financial year ending March 31, 2026 (FY26) earnings by 8%, reflecting lower net interest margins from the recent 25 basis points (bps) overnight policy rate cut and aligned its credit cost assumptions to 35 bps from 31, being the upper range of guidance. Citing a recent meeting with the lender, Kenanga Research noted that the group presented a FY26 loans growth guidance of 8% to 10% which is below the 12% achieved in FY25. The research firm said its model assumptions are conservatively kept at around 8% in line with the lower band of guidance. The group's recently completed rights issue generated cash proceeds of RM600mil in capital to fuel its growth strategies. 'We gather that ABMB is likely deploying across all markets as opposed to accelerating its position in a specific market. 'Amid macro-economic challenges, we opine the bank may benefit from a larger collateralised portfolio (mortgage) as delinquency risks may emerge from its commercial segment, namely from small medium enterprises which are 34% of its loan book.'
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