Alliance Bank records higher 2Q earnings on loans growth, higher fee income

KUALA LUMPUR: Alliance Bank Malaysia Bhd recorded another quarter of earnings growth in the three months ended Sept 30, 2025 (2QFY26), driven by loans growth and higher non-interest income.

Commenting on the bank's results, group CEO Kellee Kam said the first half of the year demonstrates the strength of the diversified business model and the disciplined execution of its strategy priorities.

“We achieved solid earnings growth, driven by robust loan expansion and higher fee-based income. These outcomes highlight the

resilience of our franchise and reinforce our ability to deliver sustainable growth across key customer segments,” he said in a statement.

In the quarter under review, Alliance Bank posted a net profit of RM206.56mil as compared to RM189.91mil in the year-ago quarter, translating to an earnings per share of 12.13 sen against 12.27 sen previously.

It reported quarterly revenue of RM626.23mil against RM605.65mil in the comparative quarter.

For the six months to Sept 30, 2025, Alliance Bank registered a net profit of RM405.26mil against RM366.56mil in the previous corresponding quarter. Six-month revenue was higher at RM1.24bil against RM1.15bil in the same period in 2024.

According to the bank, its net interest income in 1HFY26 rose 4% year-on-year (y-o-y) to RM993.9mil, supported by higher loan volumes across several segments. Net interest margin (NIM) stayed within guidance at 2.37%.

Meanwhile, non-interest income expanded 30.7% y-o-y to RM247.6mil, due to strong foreign exchange sales and trade fees, higher banking service fees and increased treasury and investment income.

On its balance sheet, the bank registered loans growth of 8.1% y-o-y due to a broad-based expansion across business segments. Customer deposits grew 12.5% y-o-y, comprising a 19.9% increase in fixed deposits and a 7.7% increase in current account savings account (Casa) deposits, for a Casa ratio of 39.1%.

In line with the performance, the board of directors proposed a first interim dividend of 9.37 sen a share, with entitlement date on Dec 12, 2025, and payable on Dec 30, 2025.