KUALA LUMPUR, Nov 28 — Alliance Bank Malaysia Bhd has posted a higher net profit of RM189.91 million in the second quarter ended Sept 30, 2024 (2Q 2024) compared to RM185.33 million in the same period last year.

A filing with Bursa Malaysia today said revenue improved to RM605.65 million from RM528.10 million.

For the first six months of its financial year ending March 31, 2025 (6M FY2025), its net profit grew to RM366.56 million compared to RM335.87 million a year ago, while revenue rose to RM1.15 billion versus RM994.36 million previously.

"The performance was mainly driven by a 15 per cent growth in net interest income to RM955.9 million, attributable to higher loan volumes, with a net interest margin of 2.47 per cent.

"Non-interest income increased 16.1 per cent to RM189.5 million, led by gains in wealth management income, foreign exchange sales, trade fees, and treasury and investment income,” it said.

Meanwhile, Alliance Bank said loans continued to grow at 14.8 per cent year-on-year (y-o-y) to RM59.1 billion, with all business segments recording double-digit y-o-y growth.

Small and medium enterprises (SME) loans were up 16.4 per cent, commercial loans (16.2 per cent), consumer loans (14.3 per cent) and corporate loans (11.6 per cent).

"Customer deposits expanded 13.8 per cent y-o-y, supporting Alliance Bank’s healthy funding base, while the total current account saving account (CASA) ratio remains one of the industry’s highest at 40.9 per cent,” it said.

The bank also declared a first single-tier interim dividend of 9.50 sen per share for the March 31, 2025 financial year.

The dividend will be paid on Dec 30, 2024, based on the dividend entitlement date set for Dec 13, 2024.

On prospect, the group anticipated that Malaysia’s economic advancement would be bolstered by sustained domestic demand, propelled by ongoing enhancements in labour market conditions and renewed governmental efforts to stimulate growth.

However, the group is cognisant of the uneven nature of the overall recovery, with certain sectors experiencing continued strain. It is maintaining a cautious stance on potential downside risks to growth stemming from external uncertainties, such as escalating geopolitical tensions.

"The group aims to continue its loan growth momentum in FY2025 with strong integrated risk management practices while strengthening its funding base.

"In addition, the group will continue to invest in upgrading its information technology infrastructure and digital capabilities to enable innovative propositions for its clients,” it said. — Bernama