Latest news with #AllianceBankMalaysiaBhd
New Straits Times
2 days ago
- Business
- New Straits Times
Banking sector seen trading sideways amid tariff incertainty: CIMB Securities
KUALA LUMPUR: The banking sector is likely to trade sideways in the near term as investors await greater clarity on tariff developments, said CIMB Securities Sdn Bhd. The firm has maintained its "Neutral" stance on the sector but kept its "Buy" calls on Alliance Bank Malaysia Bhd (ABMB), Public Bank Bhd (PBB), and RHB Bank Bhd, citing appealing dividend yields at current valuations. "Key upside risks include lower credit costs, stronger net interest margins, and potential bond gains from non-interest income. "Conversely, downside risks include a higher-than-expected cost of funds, liquidity outflows, and deterioration in asset quality," it said in a note. According to CIMB Securities, loan applications grew 10.1 per cent year-on-year (YoY) in April 2025, from 4.4 per cent YoY in March. Approved loans expanded 8.8 per cent YoY in April compared with 9.6 per cent YoY in March. "Leading loan indicators were driven mainly by the corporate segment, specifically the purchase of fixed assets (other than land and buildings), construction, and working capital segments. "There may be an element of front-loading in the numbers, as Malaysia's export growth accelerated markedly to 16.4 per cent YoY in April, driven by the 90-day pause in tariffs," it added. Meanwhile, CIMB Securities noted that loan growth slipped marginally to 5.1 per cent YoY in April, compared with 5.2 per cent YoY in March. This was supported by the auto, residential, and non-residential mortgage segments. Deposit growth rose to 3.8 per cent YoY in April from 3.0 per cent YoY in March owing to stronger current account and savings account (CASA) deposit growth of 4.5 per cent YoY in April. Business deposit growth was higher at 3.1 per cent in April after a flattish 0.7 per cent YoY rate in March but remains lower than the 6–9 per cent YoY growth recorded in 1H24. The loan-to-deposit ratio eased slightly to 87.4 per cent in April from 87.6 per cent in March. Furthermore, gross impaired loans increased 0.7 per cent or RM216.4 million, month-on-month (MoM) in April, mainly driven by the household segments. The gross impaired loans ratio was stable at 1.43 per cent in April compared to 1.42 per cent in March, while loan loss coverage remained high at 91.0 per cent in April from 91.2 per cent in March.
The Star
3 days ago
- Business
- The Star
Trading ideas: Alliance, LSH, LYC, 7-Eleven, RHB, Master Tec, Mah Sing, CIMB, Capital A, SKP, Yinson, Berjaya, BAT, Bintulu, Bank Islam
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. Alliance Bank Malaysia Bhd received 99.9% shareholder approval at its EGM for the proposed RM600mn renounceable rights issue, priced at RM3.33 per rights share on a 2-for-17 basis. LSH Capital has proposed to acquire three land parcels along Persiaran Titiwangsa 3, KL, for RM17.4mn cash via its wholly owned unit, LSH Development. LYC Healthcare has been classified as a GN3 company after shareholders' equity fell below 25% of issued capital based on FY25 unaudited results. 7-Eleven Malaysia announced the resignation of its non-independent non-executive chairman Datuk Farhash Wafa Salvador, effective after the AGM. RHB Bank has appointed Nurjesmi Mohd Nashir as its new head of wholesale banking effective July 1, succeeding Datuk Fad'l Mohamed, who now leads Bursa Malaysia. Master TEC Group Bhd has proposed to transfer its listing from the ACE Market to the Main Market of Bursa Malaysia, signalling its readiness to comply with the stricter regulatory framework. Mah Sing Group is seeking new partners for a 17.55-acre data centre project in Bangi after its agreement with Bridge Data Centres lapsed. A separate 35.68-acre collaboration for a 200MW data centre with BDC remains active until Oct 28. Mah Sing Group reported a 9.98% YoY rise in 1QFY25 net profit to RM66.04mn, with revenue up 16.4% YoY to RM649.69mn, driven by progressive billings. CIMB Group posted a 1.9% YoY increase in 1QFY25 net profit to RM1.97bn, supported by higher interest income and lower provisions. Capital A swung to a 1QFY25 net profit of RM689.57mn (from RM91.55mn loss a year ago), lifted by RM882.7mn earnings from its aviation segment (classified as discontinued). SKP Resources saw 4QFY25 net profit rose 60% YoY to RM30.3mn from RM18.9mn in 4QFY24, on stronger contributions from its core business. Yinson reported FY25 net profit of RM1.25bn, up 66.1% YoY, after reassessing tax treatment for its Netherlands offshore ops. Berjaya Corp remained in the red for the fourth straight quarter with a 3QFY25 net loss of RM92.34mn, versus a RM689.92mn profit in 3QFY24. BAT Malaysia reported a weaker 1Q25 net profit of RM23.3mn, down from RM29.9mn YoY, on the back of lower revenue of RM321.9mn (-21.9% YoY). Bintulu Port posted a 36% YoY drop in 1QFY25 net profit to RM28.4mn due to lower port activity and higher admin expenses. Revenue declined 3.3% YoY to RM201.7mn. Bank Islam reported a 3% YoY decline in 1QFY25 net profit to RM126.27mn due to higher provisions and overheads. Impairment allowances surged 89% YoY to RM79.78mn.
The Sun
4 days ago
- 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.
New Straits Times
27-05-2025
- Business
- New Straits Times
Alliance Bank's Q4 earnings up 11pct to RM198mil, declares 9.9 sen dividend
KUALA LUMPUR: Alliance Bank Malaysia Bhd's net profit rose 11 per cent to RM197.49 million for the fourth quarter ended March 31, 2025 (4Q25), from RM177.74 million a year earlier, boosted by higher net interest income and lower provisions. Quarterly revenue grew to RM563.24 million from RM516.17 million, driven by stronger contributions from both conventional and Islamic net interest income, partially offset by a slight decline in fee-based income. The bank registered higher earnings per share of 12.76 sen compared to 11.48 sen in 4Q24, the bank's filing to Bursa Malaysia showed. For the rom RM690.48 million a year ago, while revenue climbed to RM2.27 billion from RM2.02 billion previously. The bank's net interest income increased by RM226.4 million or 13.2 per cent year-on-year (YoY) in FY24, predominantly attributed to loan growth. The net interest margin (NIM) for the period was 2.45 per cent compared to 2.48 in FY24. Operating expenses rose by RM114.8 million or 11.8 per cent YoY, while the cost-to-income ratio (CIR) stood at 48.0 per cent. The implementation of the ACCELER8 strategic plan facilitated an expansion in the group's loans, advances, and financing, which increased by 12 per cent YoY to reach RM62.4 billion. The growth was predominantly propelled by advancements across all business lines. Alliance Bank has proposed a second interim dividend of 9.9 sen per share, bringing the total dividend for FY25 to 19.4 sen per share and resulting in a 40 per cent total dividend payout ratio, amounting to RM300.3 million. In a separate statement, Alliance Bank group chief executive officer Kellee Kam said the group's record-breaking results for FY25 reflect the successful execution of its Acceler8 strategy and reinforces our longer-term growth trajectory. "We remain focused on sustainable growth and creating long-term value for all our stakeholders," he noted. The bank is also advancing its sustainability agenda, achieving RM14.4 billion in new sustainable banking business as of FY2025, progressing towards its RM15 billion target by FY27. Collaborating with Bursa Malaysia, the bank launched the Sustainability Enhancement Programme to assist ACE market-listed companies with environmental, social and governance (ESG) reporting. On prospects, Alliance 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, the bank will continue to upgrade its products, services, and technology to drive future growth, prudently expand lending, diversify deposit sources, and strengthen risk management in FY26.
