KUALA LUMPUR (May 30): Alliance Bank Malaysia Bhd’s (KL:ABMB) net profit for the fourth quarter ended March 31, 2024 (4QFY2024) rose 36.6% year-on-year (y-o-y), thanks to elevated revenue and a reduction in allowances for expected credit losses.

Alliance Bank’s net profit increased to RM177.7 million in 4QFY2024 from RM130.2 million a year earlier, resulting in earnings per share rising to 11.48 sen per share compared to 8.41 sen per share, according to the banking group’s bourse filing.

Quarterly revenue rose 10.1% y-o-y to RM516.2 million from RM468.6 million, mainly due to higher interest income from loans, advances and financing.

Alliance Bank declared a second interim dividend of 11.45 sen per share, to be paid on June 28. This brings the total dividend payment for the full financial year ended March 31, 2024 (FY2024) to 22.3 sen per share, 0.3 sen higher compared to FY2023.

Record revenue in FY2024

For FY2024, Alliance Bank’s net profit edged 1.9% higher to RM690.5 million or 44.6 sen per share, from RM677.85 million or 43.79 sen per share in FY2023, while revenue also rose 5.2% to a record high of RM2.02 billion from RM1.92 billion.

Net interest income grew 4.1% y-o-y to RM1.72 billion, with a net interest margin of 2.48%. Non-interest income (NOII, excluding brokerage) increased by 15.1% y-o-y to RM300.2 million, driven by higher income from wealth management, foreign exchange fees and banking services fees.

Meanwhile, total gross loans grew 13.6% to RM55.7 billion, surpassing the industry growth of 6.0%. Net credit cost for FY2024 improved by 6.1 basis points y-o-y to 25.8 basis points, with loan loss coverage at 113.8%.

On prospects, the group said it will focus on expanding customer acquisition through new channels, digital platforms, strategic partnerships, productivity improvements and branch enhancements.

The group also aims to increase client wallet share by enhancing product and channel offerings in its consumer and business banking, driving fee income, and maximising cross-business unit collaboration. Additionally, the group will strengthen its Islamic banking propositions by expanding differentiated solutions like Halal-in-One.

“With a focus on prudent loan growth above industry averages, robust credit risk management practices, enhancement of deposit/CASA (current account savings account) propositions, and continued investments in technology, we aim to further expand market share in FY2025,” the group added.

Shares in Alliance Bank traded one sen or 0.26% lower at RM3.79 at noon break on Thursday, giving the group a market capitalisation of RM5.87 billion.