Alliance Bank Records RM826.5 Million Net Profit In FY2026, Supported By Higher Revenue And Loan Growth

KUALA LUMPUR,MAY,2026 – Alliance Bank Malaysia Bhd recorded a stronger financial performance for the financial year ended March 31, 2026, supported by sustained business momentum, diversified income growth and continued execution of its Acceler8 strategy.

The bank reported net profit after tax of RM826.5 million, representing a 10.1% year-on-year increase, while revenue rose to RM2.47 billion. The improved performance was driven by growth in both net interest income and non-interest income amid a more challenging global environment.

According to Alliance Bank, net interest income stood at RM2.01 billion, mainly supported by higher loan volumes. Its net interest margin was recorded at 2.34%, while non-interest income rose 42.0% year-on-year to RM459.2 million.

The bank’s cost-to-income ratio stood at 47.9% as it continued investing in people and technology. Group Chief Executive Officer Kellee Kam said the FY2026 performance reflected disciplined execution of the Acceler8 strategy and the resilience of the bank’s diversified business model.

Alliance Bank’s gross loans expanded 7.5% year-on-year, outpacing industry growth of 5.4%. Total gross loans and unrated bonds grew 9.0%, supported by broad-based expansion across SME, commercial and consumer banking segments.

By segment, SME loans increased 7.4% year-on-year, commercial loans grew 13.2%, while consumer loans expanded 9.0%. The growth indicates that Alliance Bank continued to strengthen its lending base across key customer groups despite market uncertainty.

Customer deposits also grew 8.8% year-on-year, mainly supported by fixed deposit growth. The bank maintained one of the highest CASA ratios in the industry at 37.5%, reflecting a stable funding position.

Asset quality remained resilient, with the bank’s gross impaired loans ratio improving to 1.73%, compared with 1.83% a year earlier. Alliance Bank also maintained healthy liquidity and capital positions, with a liquidity coverage ratio of 158.5%.

Its capital position also strengthened, with the Common Equity Tier-1 ratio at 13.2% and total capital ratio at 17.6%. These figures suggest the bank remains well-positioned to manage operating risks while supporting customer financing needs.

In line with its dividend policy, Alliance Bank proposed a second interim dividend of 9.74 sen per share, bringing the total dividend for FY2026 to 19.1 sen per share. This translates to a dividend payout ratio of 40%.

Under its Acceler8 2027 priorities, Alliance Bank said it continued to make progress in strengthening its market presence. SME banking market share rose to 5.44%, consumer loans market share increased to 2.35%, while corporate market share climbed to 1.96%.

The bank also recorded growth in regional franchises across Sabah, Sarawak, Penang and Johor, where loans and deposits expanded 7% year-on-year. In Islamic banking, its Halal in One programme helped drive 33% year-on-year growth in financing balances.

Alliance Bank also highlighted continued progress in sustainability financing. Since FY2022, the bank has achieved RM16.0 billion in cumulative new sustainable banking business, moving closer to its revised FY2028 target of RM17.0 billion.

Through its Sustainability Impact Programme, the bank achieved RM598 million in approved financing during FY2026, exceeding its annual target and bringing cumulative approved financing under the programme to RM1.80 billion.

The bank said it remains focused on supporting customers amid ongoing geopolitical uncertainties and a challenging operating environment. It has also introduced targeted assistance measures and participated in Bank Negara Malaysia’s SME Stabilisation Relief Facility to support small and medium enterprises facing pressure from global uncertainty.

Alliance Bank’s FY2026 results show resilient earnings growth, stronger revenue, healthy loan expansion and stable asset quality. While global uncertainty remains a risk, the bank’s diversified income base, capital position and SME-focused strategy are expected to support its growth direction moving into FY2027.