KUALA LUMPUR (May 22): Alliance Bank Malaysia Bhd (KL:ABMB) remains cautiously optimistic for the financial year ending March 31, 2027 (FY2027) despite persistent external uncertainties, after delivering higher earnings in FY2026.

Net profit for FY2026 rose 10.1% to RM826.53 million from RM750.53 million, driven by a 42% year-on-year surge in non-interest income, while net interest income grew 3.1%. Full-year revenue increased 8.65% to RM2.47 billion from RM2.27 billion, according to its filing with Bursa Malaysia. 

For the fourth quarter ended March 31, 2026, net profit rose 4.33% to RM206.04 million from RM197.49 million a year ago, while revenue grew 5.3% to RM593.08 million from RM563.24 million.

The bank proposed a second interim dividend of 9.74 sen per share, bringing total FY2026 dividends to 19.1 sen per share, translating into a payout ratio of 40%. The full-year payout is slightly lower than 19.4 sen paid in FY2025.

Looking ahead, Alliance Bank said its strengthened fundamentals, improved capital position and more resilient operating platform position it well to navigate near-term volatility while delivering sustainable value and laying the groundwork for its post-Acceler8 strategy.

“FY2027 marks a transition year for the group as we enter the final phase of our Acceler8 2027 strategy. We have largely established our core growth engines, expanded market share across key segments, strengthened technology capabilities and reinforced our balance sheet to support sustainable growth,” it said.

“Accordingly, our focus in FY2027 will shift from broad-based expansion towards value realisation, operational refinement and disciplined execution, while positioning the group for its next phase of strategic evolution beyond Acceler8,” it added.

The bank’s gross loans expanded 7.5% year-on-year, outpacing industry growth of 5.4%, supported by broad-based expansion across small and medium enterprises (SMEs), commercial and consumer segments.

Customer deposits grew 8.8%, driven mainly by fixed deposits. Net interest margin stood at 2.34%, compared with 2.45% a year earlier.

The bank said it maintained one of the highest current account savings account ratios in the industry at 37.5%. Asset quality improved, with the gross impaired loans ratio easing to 1.73% from 1.83% previously.

Liquidity and capital positions remained strong, with liquidity coverage ratio at 158.5%, while Common Equity Tier 1 (CET1) ratio strengthened to 13.2% and total capital ratio rose to 17.6%.

Separately, Alliance Bank said it is stepping up support for businesses through Bank Negara Malaysia’s SME Stabilisation Relief Facility, aimed at helping SMEs (including micro-enterprises) to weather economic challenges from the ongoing West Asia conflict.

The move complements its broader SME solutions to address liquidity needs and support business continuity, including SME Express Financing, which provides quick access to collateral-free working capital of up to RM500,000.

“Coupled with holistic advisory support and robust digital capabilities, the bank remains focused on equipping SMEs with practical and timely solutions to strengthen resilience and drive sustainable growth. 

“The bank also works closely with affected customers on a case-by-case basis to explore appropriate repayment flexibility or other relief options and encourages customers who anticipate difficulties to engage early with their relationship managers or through the Bank’s official customer service channels,” Alliance Bank added. 

At Friday’s noon break, Alliance Bank shares slipped one sen or 0.21% to RM4.76, valuing the group at RM8.24 billion.