by AZALEA AZUAR / TMRgraphic
ALLIANCE Bank Malaysia Bhd’s net profit for the quarter ended June 30, 2022 (1Q23), increased by 45.3% year-on-year (YoY) to RM212.2 million from RM146 million in 1Q21.
The group’s higher net profit was supported by a higher net interest income of 7.6% and a lower allowance for expected credit losses while net interest margin also soared by 26%.
Its 1Q23 revenue declined 1.8% to RM474.1 million from RM483 million a year ago.
“In comparison with the immediate preceding quarter, the group’s profit after taxation of RM212.2 million for the quarter was higher by RM109.1 million.
“This was mainly due to higher net interest income, lower operating expenses and credit cost,” it said in a Bursa filing.
Alliance Bank’s consumer banking segment’s net income was up 6.2% supported by the increase in net interest income by RM7.9 million and an increase in other operating income by RM1.6 million.
Additionally, its financial markets segment’s net income sunk 29.6% due to lower other operating income while lower brokerage fees caused the stockbroking and corporate advisory segment to record a loss before tax of RM3.2 million.
On the other hand, the Islamic banking segment, which consists of consumer banking, business banking and financial markets, recorded a net profit after taxation of RM45.5 million.
This represents an increase of RM23.9 million compared to the corresponding period last year due to higher revenue from net profit income and lower allowance for expected credit losses.
Moving forward, Alliance Bank will focus more on the group’s small and medium enterprises and consumer banking core segments, capitalising on its consumer and business banking franchises as well as enhancing its productivity and efficiencies.
“In addition to the above, the group will continue to focus on addressing asset quality concerns by continuing to prioritise customer engagement and continue managing its loan portfolio with refined credit underwriting to support the above business growth.
“With these focus areas, and continuing effort to apply prudent management practices, the group expects to deliver sustainable returns to our shareholders while strengthening our market presence,” it added.
At noon break, Alliance Bank was unchanged at RM3.52, giving the bank a market capitalisation of RM5.45 billion.
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