KUALA LUMPUR (Feb 27): Alliance Bank Malaysia Bhd (KL:ABMB) reported a 5.5% increase in net profit for the third quarter ended Dec 31, 2024 (3QFY2025), as higher interest income and an improved Islamic banking business were bolstered by foreign exchange (forex) gains.

For the quarter under review, net profit jumped to RM186.67 million, compared with RM176.86 million in the same period last year.

Quarterly revenue grew to RM561.28 million, up from RM509.92 million in 3QFY2024.

For the nine-month period (9MFY2025), net profit rose 7.9% year-on-year (y-o-y) to RM553.23 million, while revenue expanded to RM1.71 billion.

For the cumulative period, the bank’s net interest income rose 13.9% y-o-y, driven by higher loan volumes, while its net interest margin stood at 2.46%.

Non-interest income also grew by 11% y-o-y to RM256.3 million, boosted by wealth management, forex sales, and treasury income. 

Overall loans expanded 14.2% y-o-y to RM61 billion, outpacing industry growth. The small and medium enterprise (SME) and commercial banking segments saw loan growth of 14.1% and 16.8% y-o-y respectively, while consumer banking loans increased 13.8%.

In a separate statement, the bank said its Acceler8 transformation strategy had played a key role in driving growth.

Under the initiative, Alliance Bank’s SME loans market share rose to 5.35%, compared with 5.19% in March 2024, while its consumer loans gained market share to 2.25%.

“Our Acceler8 strategy continues to deliver strong results across all eight growth pillars, while deepening our role as a trusted partner to businesses and communities,” said Alliance Bank group chief executive officer Kellee Kam Chee Khiong. 

Alliance Bank also expanded its digital payment ecosystem through partnerships with Samsung Pay and Google Pay, enabling seamless mobile payments for its Visa credit cardholders.

On the sustainability front, Alliance Bank had achieved RM14 billion in cumulative new sustainable business by 9MFY2025, moving closer to its RM15 billion target for FY2027.

The bank’s Sustainability Impact Programme has reached 90% of its full-year target, with RM503 million in approved loans supporting businesses in the transition to greener operations.

At the time of writing on Thursday, Alliance Bank shares were traded at RM5.31, giving it a market capitalisation of RM8.2 billion.

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