KUALA LUMPUR (Nov 25): Alliance Bank Malaysia Bhd (KL:ABMB) reported its best quarter in three years thanks to higher income and lower provisions for bad debt.
Net profit for the three months ended Sept 30, 2025 (2QFY2026) was RM206.56 million, an increase of 9% when compared to the same period last year, the company said in an exchange filing. The latest results also marked its highest net income since 1QFY2023.
Year-on-year, non-interest income rose 15% from higher processing fee income and lower credit card fee expenses while net interest income climbed less than 1% on the back of loan growth.
For FY2026, the bank said it will remain vigilant and focused on enhancing products, services and technology. Alliance Bank, one of the smallest lenders in the country, will also expand lending while diversifying funding sources and strengthening risk management capabilities.
Alliance Bank's net interest margin — a measure of a bank's profitability by comparing its income from loans to expenses on deposits — shrank 17 basis points to 2.32%. Net credit cost, which reflects provisions after recoveries, came in at 8.8 basis points, compared with 16.4 basis points a year earlier.
The bank declared a first interim dividend of 9.37 sen per share, to be paid on Dec 30, representing a 40% payout ratio in line with its dividend payout guidance of between 40% and 50%.
“We have passed the midpoint of our Acceler8 2027 transformation and this marks a significant milestone that reflects the resilience, agility, and customer focus of our teams,” said Alliance Bank group chief executive officer Kellee Kam in a statement.
For the first half of FY2026, the bank’s net profit rose 11% to RM405.26 million, from RM366.56 million in the previous corresponding period, as non-interest income grew 31% and net interest income rose 4%.
The net interest margin stood at 2.37%, within guidance, as gross loans grew 8% year-on-year for the first six months driven by broad-based expansion across all business segments. Customer deposits were up nearly 13%.