KUALA LUMPUR (Feb 25): Alliance Bank Malaysia Bhd's (KL:ABMB) net profit climbed 15% in the third quarter ended Dec 31, 2025 (3QFY2026) as higher income more than offset increased operating expenses and allowances for credit losses.
The bank, one of the country’s smaller lenders, posted a net profit of RM215.22 million in 3QFY2026, its highest quarterly profit on record, up 15.3% from RM186.67 million a year earlier, as revenue rose 12.5% year-on-year to RM631.59 million from RM561.28 million, a bourse filing on Wednesday showed.
Earnings per share for the quarter stood at 12.4 sen, compared with 12.1 sen in 3QFY2025. Alliance Bank did not declare any dividend for the latest quarter.
For the nine months ended Dec 31, 2025 (9MFY2026), net profit rose 12.2% to RM620.48 million from RM553.23 million a year earlier, while revenue increased 9.8% to RM1.87 billion from RM1.71 billion.
The improvement was driven by a 45.3% jump in non-interest income to RM372.30 million, supported by higher wealth management fees, stronger foreign exchange sales and trade-related fees, as well as treasury and investment income. Net interest income, on the other hand, rose 3.5% year-on-year to RM1.50 billion.
Gross loans expanded 7.9% year-on-year to RM65.8 billion, led by 15.1% growth in commercial loans, followed by 10.5% in consumer mortgages and 6.8% in loans to small and medium enterprises (SMEs). Meanwhile, customer deposits grew 10.4% to RM68.1 billion.
Alliance Bank's net interest margin — a measure of a bank's profitability by comparing its income from loans to expenses on deposits — shrank 10 basis points to 2.36% compared to the previous corresponding period.
Net credit cost, which reflects provisions after recoveries, was stable at 30.7 basis points, while loan loss coverage improved to 118.4%.
The bank’s cost-to-income ratio stood at 46.7% for 9MFY2026, while its gross impaired loans ratio improved to 1.89% from 1.97% a year ago.
Group chief executive officer Kellee Kam said the 9MFY2026 performance reflected disciplined execution of the bank’s Acceler8 2027 strategy, with progress in SME expansion, consumer lifecycle propositions and Islamic banking.
"While global uncertainties persist, Malaysia’s positive gross domestic product outlook provides a supportive environment for us to remain focused on innovation and meeting our customers’ evolving needs," he said in a statement.
At Wednesday's noon market break, shares of Alliance Bank were down half a sen or 0.96% at RM5.15, with a market capitalisation of RM8.91 billion. Year to date, the counter has gained 3%.