Latest news with #AllianceBank
The Star
a day ago
- Business
- The Star
LBS achieves pivotal milestone in green financing
LBS group managing director and chief executive officer Datuk Wira Joey Lim Hock Guan (left) and Alliance Bank's group chief executive officer, Kellee Kam (right) at the official document presentation ceremony. LBS Bina Group Bhd has announced that its special purpose vehicle, Suria Hijauan Sdn Bhd has secured a RM88.4mil green financing facility from Alliance Bank Malaysia Bhd to fund the Engineering, Procurement, Construction and Commissioning (EPCC) costs for its maiden 43 MWp solar farm project. The project, which is under the Corporate Green Power Programme (CGPP), is located in Senawang, Negeri Sembilan and is scheduled for completion by the end of 2025. The solar farm is expected to deliver stable, recurring revenue, thus enhancing long-term earnings resilience, underscoring LBS' commitment to sustainable growth. The solar farm project is expected to generate approximately 53,000 MWh of clean energy annually, effectively offsetting about 35,000 tonnes of carbon emissions. Atlantic Blue Sdn Bhd – a subsidiary of Solarvest Holdings Bhd – was appointed as the EPCC contractor under a RM104.0mil contract, leveraging its expertise in delivering large-scale solar projects. LBS group executive chairman Tan Sri Ir Dr Lim Hock San commented that this green financing marks an important milestone for LBS as they diversify into renewable energy. 'Securing this credit facility from a reputable bank like Alliance Bank highlights the strong potential of our renewable energy venture and our capacity to expand our initiatives within this sector. 'This support reflects confidence in our strategic direction and financial strength, while also facilitating the successful execution of this project. 'This initiative not only resonates with our goal of creating a positive environmental impact, it also strategically complements our core property development business by integrating future product offerings with renewable energy solutions. 'In turn, this contributes to Malaysia's national carbon reduction goals, supporting the country's transition towards a low-carbon economy.' Expressing his optimism about the project, Alliance Bank's group chief executive officer, Kellee Kam said, 'At Alliance Bank, we believe financial institutions have a critical role to play in advancing sustainable development. 'We are honoured to partner with LBS, a company whose values and vision closely align with our own. He added, 'Today's announcement is not just the launch of a project – it marks the beginning of a journey and a cause we are proud to be part of.'
New Straits Times
a day ago
- Business
- New Straits Times
LBS Bina secures RM88.4mil financing for maiden solar farm project
KUALA LUMPUR: LBS Bina Group Bhd's special purpose vehicle, Suria Hijauan Sdn Bhd, has secured an RM88.4 million green financing facility from Alliance Bank Malaysia Bhd to cover the engineering, procurement, construction and commissioning (EPCC) costs for its maiden 43 MWp solar farm project in Negeri Sembilan. The project, part of the Corporate Green Power Programme (CGPP) and located in Senawang, is slated for completion by the end of 2025. It is expected to generate about 53,000 MWh of clean energy annually, offsetting around 35,000 tonnes of carbon emissions each year. Atlantic Blue Sdn Bhd, a subsidiary of Solarvest Holdings Berhad, was appointed as the EPCC contractor under a RM104 million contract, leveraging its expertise in delivering large-scale solar projects. Tan Sri Dr. Lim Hock San, group executive chairman of LBS, said that this green financing marks an important milestone for LBS as the group diversifies into renewable energy, reinforcing its commitment to sustainability. "Securing this credit facility from a reputable bank like Alliance Bank highlights the strong potential of our renewable energy venture and our capacity to expand our initiatives within this sector. This support reflects confidence in our strategic direction and financial strength, while also facilitating the successful execution of this project," he said. Lim said that this initiative not only resonates with the group's goal of creating a positive environmental impact, but it also strategically complements LBS' core property development business by integrating future product offerings with renewable energy solutions. "In turn, this contributes to Malaysia's national carbon reduction goals, supporting the country's transition towards a low-carbon economy," he said. The solar farm is expected to provide stable, recurring revenue, enhancing LBS' long-term earnings resilience and reinforcing its dedication to sustainable growth. Alliance Bank's group chief executive officer, Kellee Kam, said, "At Alliance Bank, we believe financial institutions have a critical role to play in advancing sustainable development. We are honoured to partner with LBS, a company whose values and vision closely align with our own."
The Star
2 days ago
- Business
- The Star
Alliance Bank steady on robust loans, healthy NIM
PETALING JAYA: CIMB Research is maintaining its 'buy' call on Alliance Bank Malaysia Bhd with an unchanged target price of RM4.80. It stated that the lender's key catalysts include robust loan growth and a healthy net interest margin or NIM. In a report to clients, the research house said its target price of RM4.80 (ex-rights basis) was based on a return on equity (ROE) of 9.7% and a fair price-to-book value of one times to the lender's financial year ending March 31, 2026 (FY26). The bank's other key catalysts include benign credit costs and a potential merger, CIMB Research said. The research house said the bank's downside risks include higher-than-expected credit costs and higher cost of funds. In the report, it also noted that Alliance Bank had announced its rights issue price fixed at RM3.33. The entitlement basis is two rights shares for every 17 existing shares. 'These are in line with our expectations. 'The total funding raised from the rights issue of RM606.5mil is consistent with the earlier indicative amount of RM600mil. 'Overall, there were no major surprises in the latest rights issue announcement,' the research house said. CIMB Research said the bank announced in March a renounceable rights issue to raise gross proceeds of RM600mil with a rights issue price of RM4.20 per rights share (reflecting a discount of approximately 20% to the then-market price of RM5.09), with an entitlement basis of three rights shares for every 32 shares. The research house reiterated that the change was in line with its expectations and that the latest announcement did not come as a surprise, and was in line with its earlier estimate that the rights price may have to be adjusted down, owing to the drop in Alliance Bank's share price. CIMB Research estimated that the rights price might have to be revised down to RM3.20 (from the earlier indicative RM4.20) if set at a 20% discount to the current share price, with the number of rights increased to 186 million from the earlier indicative 145.1 million. This is based on an estimated revised entitlement of four rights shares for every 32 shares. The research house pointed out that Alliance Bank's key targets for FY26 included an ROE of more than 10% post rights issue, loan growth of between 8% and 10%, net interest margin of between 2.40% and 2.45%, net credit cost of between 30 and 35 basis points, cost-to- income ratio of 48%, and a dividend payout ratio of 40% to 50%.
The Sun
02-06-2025
- Business
- The Sun
Alliance Bank to maintain strong loan momentum in FY2026
KUALA LUMPUR: Alliance Bank Malaysia Bhd aims to maintain strong loan momentum in FY2026 amid Malaysia's stable lending conditions. Group CEO Kellee Kam said the bank is guiding for loan growth of between 8% and 10% for FY2026, doubling the industry's expected growth of around 5%. 'We've been growing between 12% and 14% over the last two years, at double the industry rate. Despite the fluid situation with US tariffs and other global uncertainties, we believe Malaysia remains accommodative for growth,' he told reporters after the bank's EGM on Friday. To fund the growth, Alliance Bank Malaysia Bhd is raising RM606.5 million through a renounceable rights issue. The bank will issue 182.13 million new ordinary shares on a 2-for-17 basis at RM3.33 per share, representing a 20.1% discount to the theoretical ex-rights price (TERP) of RM4.1672. Kam said the capital injection is meant to fuel the bank's ongoing growth under its Accelerate 2027 plan. 'So again, if you look at our first quarter GDP numbers, it was at 4.4% after a very strong last year. Last year was about 5.6%. 'So we believe that the banking sector will continue to be accommodative for growth, sufficient liquidity and sufficient fiscal and monetary levers,' he said. He said the bank wants to position itself with enough capital to continue that growth. 'We want to not slow down because we believe that there's an opportunity for Alliance Bank to continue that pace of growth.' Kam said the bank expects growth to remain broad-based across business segments, as seen in FY2025 when total loan growth of 12% was well distributed. 'Consumer, which grew about close to 13%, ....about 12.6%. Our SME grew at about 10.5%. Commercial grew about 15%, and corporate grew about close to 9%. So it was fairly well distributed within the segments.' Kam said Accelerate 2027 was about broadening its engines of growth, which is how it has been able to grow much faster than it traditionally did. 'If you look at the compounded annual loan growth pre-Covid – specifically the three years before the pandemic – we used to grow about 3.3% compounded annually. Now, our three-year compounded growth is closer to 10.5%–10.6%, which is nearly three times what it used to be.' The rights issue is expected to lift the bank's core equity Tier-1 (CET1) ratio from 12.2% to 13.3%, and total capital ratio to nearly 18%, in line with larger peers. The rights issue is partially underwritten by RHB Investment Bank, which will underwrite 129.2 million shares – about 71% of the total. Rights trading runs from June 17 to 24, with the subscription deadline on July 2. The new shares will be listed on July 15. Alliance Bank FY2025 revenue up 12.3% y-o-y to RM2.3 billion and net profit rising 8.7% to a record RM750.7 million. Net interest income climbed 13.2% to RM1.95 billion, while net interest margin held steady at 2.45%. Non-interest income rose 7.7% to RM323.4 million. Total gross loans expanded by 12% to RM62.4 billion – more than double the industry's 5.2% growth.
The Star
28-05-2025
- Business
- The Star
Alliance Bank targets further growth for FY26
PETALING JAYA: Alliance Bank Malaysia Bhd , which reported record earnings for its financial year ended March 31, 2025 (FY25), is positioning itself for continued growth in FY26, with plans to grow lending, diversify deposit sources and improve risk management despite the risk of heightened global trade tensions. In a filling with Bursa Malaysia yesterday, the bank said it will remain vigilant of the evolving global developments, particularly the potential escalation of US-China trade tensions, which could weigh on global trade activity and economic growth. 'Notwithstanding this, we will continue to upgrade our products, services, and technology to drive future growth, prudently expand lending, diversify deposit sources, and strengthen risk management in FY26,' it noted. The bank's forward strategy is framed within its 'Acceler8 2027 roadmap', which has reached its halfway mark. Alliance Bank said it would stay focused on executing the eight growth pillars laid out in the plan to support long-term expansion and fortify its market position. Among its key FY26 priorities is sustaining the momentum in small and medium enterprises (SME) banking. For FY25, the bank's market share in SME banking rose to 5.39% from 5.19% in FY24, with fee income increasing 9% year-on-year (y-o-y). Alliance Bank also plans to support business customers 'throughout their lifecycle' by offering end-to-end financial solutions and capturing recurring transactional and fee-based income. On the consumer front, the bank aims to scale its offerings for young professionals and high-net-worth individuals. This includes expanding innovative digital propositions such as its virtual credit card. Other key pillars include deepening ecosystem partnerships in areas such as sustainability, becoming a regional leader in key economic corridors such as Penang, Johor and Sabah and Sarawak. The bank also aims to enhance client coverage under corporate and capital markets, grow its Islamic banking and leveraging strategic partnerships to broaden product and distribution reach. Alliance Bank reported record earnings for FY25, with revenue rising 12.3% to RM2.27bil from RM2.02bil in FY24, supported by growth in both net interest income (NII) and non-interest income (NOII), while net profit increased 8.7% to RM750.73mil from RM690.48mil. NII rose RM226.4mil or 13.2% y-o-y to RM1.95bil, driven by higher loan volumes, with total loans growing 12% y-o-y to RM62.4bil with growth across all business lines. The net interest margin stood at 2.45%, down from 2.48% a year earlier. NOII increased RM23mil or 7.7% to RM323.4mil, mainly from higher treasury and investment income and trade fees, after accounting for lower wealth management income and higher credit card fee expenses. Operating expenses rose RM114.8mil or 11.8% y-o-y, with the cost-to-income ratio stable at 48% as 'the bank continued investing in technology and people.' The current account savings account ratio stood at 41%, supported by a 14.7% y-o-y increase in customer deposits, with total deposits rising to RM65.83bil from RM57.4bil a year ago. The bank maintained capital strength, with a common equity tier-1 ratio of 12.2%, tier-1 capital ratio of 13.4%, and total capital ratio of 16.7%, while liquidity coverage ratio stood at 171.6% and loan-to-fund ratio at 85.6%. Credit impaired loans, advances and financing stood at RM1.15bil at end-FY25, down from RM1.18bil at end-FY24, with the net impaired loans ratio improving to 1.02% from 1.16%. Alliance Bank has proposed a second interim dividend of 9.9 sen per share for the final financial year quarter (4Q25), bringing the total dividend for FY25 to 19.4 sen per share. This translates into a 40% payout ratio amounting to RM300.3mil. For 4Q25, the bank's net profit 11.1% to RM197.5mil from RM177.7mil in 4Q24, with revenue increasing 9.1% to RM563.2mil from RM516.2mil.
