Alliance Bank posts record net profit of RM751m
KUALA LUMPUR: Alliance Bank Malaysia Bhd has posted a record net profit of RM751 million for the financial year ended March 31 2025 (FY25), supported by double-digit loan growth and the ongoing execution of its Acceler8 transformation plan.
At its 43rd annual general meeting and subsequent extraordinary general meeting yesterday, shareholders approved all resolutions, including a long-term incentive plan (LTIP) comprising a share issuance scheme and share grant scheme to retain and motivate key staff.
CEO Kellee Kam Chee Khiong said the bank's loan growth outpaced the industry average, rising over 12% in FY25.
'We have erased five years of market share losses and are now midway through our Acceler8 journey, with leading indicators progressing positively,' he told reporters at a press conference.
The Acceler8 2027 strategy is built on eight pillars, focusing on areas including digital innovation and sustainability.
Alliance Bank recently won awards for its virtual credit card and SME digital offerings and reaffirmed its commitment to environmental, social and governance principles.
Commenting on the overnight policy rate cut, Kam said net interest margins could narrow by about three basis points from the current 2.45%, though guidance remains between 2.4% and 2.45%.
For FY26, the bank projects loan growth of 8% to 10%, slightly below the 12%–14% achieved in previous years, reflecting rising business costs and global uncertainties.
Credit cost guidance remains at 30-35 basis points versus 31.9 basis points last year.
Alliance Bank expects to complete its relocation to Menara Alliance by August, which will eliminate annual rental expenses of about RM13 million and help offset higher costs from the 8% service tax hike.
Executives noted that while GDP growth has been revised to 4–4.5%, domestic demand remains resilient and unemployment is at multi-year lows, supporting asset quality and growth prospects.
The bank also expects the 13th Malaysia Plan to spur high-value sectors such as energy transition and technology, potentially boosting credit demand.
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