Alliance Bank aims for 10% profit growth

KUALA LUMPUR: Alliance Bank Malaysia Bhd aims to achieve a 10% growth in net profit in the financial year ending March 31, 2019 (FY19) against the backdrop of improved consumer sentiment following the zero-rating of the goods and services tax in June.

Group chief executive officer Joel Kornreich said the company recorded a 3.7% lower after tax profit in FY18, as it invested RM74mil in its transformation initiatives.

“The net impact of the expenses will decrease significantly, down to zero in FY19, which will contribute to a higher net profit,” he told reporters after the company’s AGM.

Kornreich said Alliance Bank was also looking at a 6% growth in revenue for FY19 compared with the 7% growth recorded in FY18, mainly due to asset expansion and improved sales.

He said the bank also targeted a 10% loan growth for FY19, from the 2.5% recorded in FY18, driven by its loan consolidation solution – Alliance One Account – which would contribute about 70% to total growth.

“The small and medium-sized enterprises loan and personal financing will each contribute 15%. We are really focusing on consumer and SME sectors,” he said.

On the outlook for the banking sector, chairman Tan Sri Ahmad Mohd Don expected it to remain competitive and said that Alliance Bank would strive to avoid being left behind in the industry.