Alliance Bank posts RM136.4mil net profit

PETALING JAYA: Alliance Bank Malaysia Bhd reported its highest quarterly net profit in nearly three years at RM136.36mil in the first quarter ended June 30, 2018.

The results were boosted by higher net interest margin and better risk-adjusted return (RAR) loans.

Alliance Bank said this was the highest quarterly net profit since the second quarter of financial year 2015 (FY15).

Net profit for the quarter under review was 1% higher year-on-year (y-o-y) from RM135mil a year ago.

“Overall revenue increased 3.8% y-o-y to RM401.07mil from RM386.61mil.

“Net interest margin improved 11 basis points to 2.43%, the top two in the industry,” it said in a filing with Bursa Malaysia.

Group chief executive officer Joel Kornreich said the higher net profit was driven by improved net interest margin due to its focus on growing better RAR loans.

Kornreich said better RAR loans grew 21.3%, making up 37% of the portfolio as compared to 32% a year ago.

This was contributed primarily by growth in the small and medium enterprise (SME), commercial, unsecured consumer loans and Alliance One Account (AOA) segments.

SME and commercial loans expanded 7.8% y-o-y, and consumer unsecured loans grew 20.2%. Overall portfolio risk-adjusted return yield improved to 1.13% from 1.08% in the first quarter of FY18.