Latest news with #AllianceBankMalaysiaBhd
The Star
18 hours ago
- Business
- The Star
Alliance Bank cautious on FY26 growth outlook
Alliance Bank Malaysia Bhd group chief executive officer Kellee Kam. KUALA LUMPUR: The revision of Malaysia's gross domestic product (GDP) growth for this year to between 4% and 4.8% by Bank Negara is considered decent, says Alliance Bank Malaysia Bhd . On Monday, the central bank had lowered its GDP projection for this year from between 4.5% and 5.5% to between 4% and 4.8%, taking into account potential tariff impacts and other external risks. 'We believe that the 4% to 4.8% range is still a pretty decent number for the Malaysian economy,' said Alliance Bank group chief executive officer Kellee Kam during a press conference held in conjunction with the bank's AGM and EGM yesterday. Despite the downward revision, Kam said the broader macroeconomic landscape continues to show resilience, supported by firm domestic demand, a low unemployment rate, healthy industrial production and stronger-than-expected tourist arrivals. 'These are positive indicators that provide some level of support to the economy. From an asset-quality standpoint, we believe the situation is still quite manageable this year,' he said. On the overnight policy rate (OPR) cut earlier this month, Kam said it is expected to compress the bank's net interest margin (NIM) by about three basis points. For its financial year ended March 31, 2025 (FY25), Alliance Bank recorded NIM of 2.45% and is maintaining its guidance at between 2.4% and 2.45% for its current financial year. 'Logically, when the OPR comes down, there may be an increase in business and lending. But this has to be balanced prudently with the changing macroeconomic landscape,' he said. He added that while the OPR cut may offer some relief, the operating environment remains challenging due to rising business costs and continued uncertainty around tariff developments. He noted that discussions around tariffs are still ongoing and outcomes may take time to materialise. Looking ahead, the bank remains cautiously optimistic about its performance outlook for its financial year ending March 31, 2026 (FY26). 'Earlier this year, we were optimistic. But as events continue to unfold, we are now approaching the outlook with a bit more caution,' he said. Alliance Bank is projecting loan growth of between 8% and 10% for its consumer segment in FY26, a moderation from the double-digit growth of 12% to 14% achieved over the past two years. Kam said the bank expects to end the year closer to the lower end of that range. 'We are being slightly more careful this year, especially in view of the tariff discussions and the impact of the wider scope of the sales and service tax,' he said. Despite the more guarded stance, he said Alliance Bank would continue supporting its core segments, which include small and medium enterprises, mid-market businesses, commercial clients and individual consumers. On asset quality, the bank is maintaining its credit cost guidance at between 30 and 35 basis points, which he said is sufficient to absorb any potential volatility. 'For FY25, we closed at around 31.9 basis points and it was trending the right way. But because of the uncertainties on some of the discussions around tariffs, we will maintain that range of 30 to 35 basis points. That should provide a sufficient range to cater to any potential unforeseen issues,' he added. In FY25, Alliance Bank posted a higher net profit of RM750.73mil or basic earnings per share of 48.49 sen, as well as a revenue of RM2.27bil. This was up from a net profit and revenue of RM690.48mil and RM2.02bil recorded respectively in the previous year.
The Sun
a day ago
- Business
- The Sun
Alliance Bank posts record net profit of RM751m
Kam says the bank's loan growth outpaced the industry average. KUALA LUMPUR: Alliance Bank Malaysia Bhd has posted a record net profit of RM751 million for the financial year ended March 31 2025 (FY25), supported by double-digit loan growth and the ongoing execution of its Acceler8 transformation plan. At its 43rd annual general meeting and subsequent extraordinary general meeting yesterday, shareholders approved all resolutions, including a long-term incentive plan (LTIP) comprising a share issuance scheme and share grant scheme to retain and motivate key staff. CEO Kellee Kam Chee Khiong said the bank's loan growth outpaced the industry average, rising over 12% in FY25. 'We have erased five years of market share losses and are now midway through our Acceler8 journey, with leading indicators progressing positively,' he told reporters at a press conference. The Acceler8 2027 strategy is built on eight pillars, focusing on areas including digital innovation and sustainability. Alliance Bank recently won awards for its virtual credit card and SME digital offerings and reaffirmed its commitment to environmental, social and governance principles. Commenting on the overnight policy rate cut, Kam said net interest margins could narrow by about three basis points from the current 2.45%, though guidance remains between 2.4% and 2.45%. For FY26, the bank projects loan growth of 8% to 10%, slightly below the 12%–14% achieved in previous years, reflecting rising business costs and global uncertainties. Credit cost guidance remains at 30-35 basis points versus 31.9 basis points last year. Alliance Bank expects to complete its relocation to Menara Alliance by August, which will eliminate annual rental expenses of about RM13 million and help offset higher costs from the 8% service tax hike. Executives noted that while GDP growth has been revised to 4–4.5%, domestic demand remains resilient and unemployment is at multi-year lows, supporting asset quality and growth prospects. The bank also expects the 13th Malaysia Plan to spur high-value sectors such as energy transition and technology, potentially boosting credit demand.
The Star
2 days ago
- Business
- The Star
Alliance Bank cautiously optimistic on FY26 performance, says group CEO
Alliance Bank Malaysia Bhd group chief executive officer Kellee Kam KUALA LUMPUR: Alliance Bank Malaysia Bhd is cautiously optimistic of its financial performance ending March 31, 2026 (FY2026) amid economic headwinds, said group chief executive officer Kellee Kam. He said the bank projects a double-digit growth rate for its loans, between 8.0 per cent and 10.0 per cent for its consumer segment in FY2026, which is lower than its previous loan growth of between 12.0 per cent and 14 per cent over the last two years. "The question is whether a combination of rising business costs as well as potential tariffs will impact business growth as well as asset quality. It is too early to tell. The expanded Sales and Service Tax was recently implemented. "The United States tariffs have not been finalised yet, so that remains a bit of a moving target,' Kam said after the bank's annual general meeting and extraordinary general meeting here today. Despite the headwinds, he noted that the liquidity position remained positive with the recent overnight policy rate (OPR) cut by 25 basis points to 2.75 per cent, a lower unemployment rate, and positive industrial and tourism figures to cushion the impact of economic headwinds. "We believe that these are compensating factors, and asset quality will be manageable this year,' Kam said. He also said that the bank projects its net interest margin to reduce by 3.0 basis points with the recent OPR cut. "It is still within our current guidance of between 2.4 per cent and 2.45 per cent. That would signal an increase in business and lending, but it has to balance prudently with the macroeconomics landscape,' Kam said. - Bernama
The Sun
2 days ago
- Business
- The Sun
13MP to boost high-value economic sectors and banking growth
KUALA LUMPUR: Alliance Bank Malaysia Bhd expects the upcoming 13th Malaysia Plan (13MP) to strengthen national efforts in developing high-value economic sectors, creating a supportive environment for banking sector expansion. Group chief executive officer Kellee Kam stated that the 13MP would likely build on recent progress, particularly in energy transition, infrastructure, and high-technology industries. 'We do expect to see the 13MP continue the progress that we have been seeing over the last few years, and really, I think part of it will be the culmination of some of the government's initiatives in growing Malaysia into a higher-value destination,' he said. Kam expressed hope for further advancements in the Energy Transition Plan, electronic and high-tech sectors, as well as sustained infrastructure investments benefiting the rakyat. He shared these remarks after the bank's annual general meeting and extraordinary general meeting. From a banking perspective, Kam believes the 13MP will foster a conducive environment for business growth. Despite macroeconomic challenges, he remains hopeful that the plan will support long-term business and credit expansion. Alliance Bank continues to focus on mid-market commercial and consumer segments while aligning with national economic priorities. Prime Minister Datuk Seri Anwar Ibrahim is set to table the five-year economic blueprint in the Dewan Rakyat tomorrow. - Bernama
The Star
23-07-2025
- Business
- The Star
Alliance poised to ramp up customer acquisition
Kenanga Research noted that the group presented a FY26 loans growth guidance of 8% to 10%. PETALING JAYA: Analysts have maintained their outperform call with a lower target price of RM4.85 for Alliance Bank Malaysia Bhd (ABMB), following its recently completed rights issue exercise. Kenanga Research told clients in a report it believes that the proceeds from the exercise would enable the group to ramp up its customer acquisition efforts. It has cut its financial year ending March 31, 2026 (FY26) earnings by 8%, reflecting lower net interest margins from the recent 25 basis points (bps) overnight policy rate cut and aligned its credit cost assumptions to 35 bps from 31, being the upper range of guidance. Citing a recent meeting with the lender, Kenanga Research noted that the group presented a FY26 loans growth guidance of 8% to 10% which is below the 12% achieved in FY25. The research firm said its model assumptions are conservatively kept at around 8% in line with the lower band of guidance. The group's recently completed rights issue generated cash proceeds of RM600mil in capital to fuel its growth strategies. 'We gather that ABMB is likely deploying across all markets as opposed to accelerating its position in a specific market. 'Amid macro-economic challenges, we opine the bank may benefit from a larger collateralised portfolio (mortgage) as delinquency risks may emerge from its commercial segment, namely from small medium enterprises which are 34% of its loan book.'
