Alliance posts best quarterly profit in three years

Publish date: Thu, 30 Aug 2018, 04:12 PM
KUALA LUMPUR: Alliance Bank Malaysia Bhd posted a higher net profit of RM136.4 million for the first quarter (Q1) ended June 30, 2018, compared with RM135.0 million a year earlier.
 
Group Chief Executive Officer Joel Kornreich said this highest quarterly net profit in over three years was driven by higher year-on-year (y-o-y) net interest margin as a result of the group’s focus on growing better risk adjusted return loans.
 
Return on equity improved to 10.2%, a ratio in line with guidance, he said in a press statement today.
 
The better profit was achieved on a 3.8 per cent increase in revenue y-o-y to RM401.1 million.
 
Kornreich said better risk adjusted return loans grew 21.3 per cent, making up 37 per cent of the portfolio compared with 32 per cent a year earlier.
 
“This was contributed primarily by growth of small and medium enterprise (SME), commercial, unsecured consumer loans and Alliance One Account (AOA),” he added.
 
SME and commercial loans expanded 7.8 per cent y-o-y and consumer unsecured loans grew 20.2 per cent and overall portfolio risk adjusted return yield improved to 1.13 per cent from 1.08 per cent a year earlier.
 
AOA loan balances reached RM1.6 billion, a growth of RM531.0 million.
 
“Our Q1 results show that we are on the right path to sustainable growth. We will continue to focus on our growth pillars which are at the foundation of our transformation journey – the SME Banking Expansion, AOA, Alliance@Work and branch transformation efforts,” Kornreich said.
 
– BERNAMA
 

 

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djibaok

Stock Alliance associated with this bank or not?

2018-08-31 09:39

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