Al­liance Bank posts RM136.4mil net profit

The Star Malaysia - StarBiz - - News -

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.

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