KUALA LUMPUR, Aug 27 — Alliance Bank Malaysia Bhd’s net profit increased to RM146.01 million in the first quarter (Q1) ended June 30, 2021 (FY2022) from RM104.31 million in the same period a year earlier largely due to higher revenue from net interest income and other operating income.

Revenue rose to RM482.96 million from RM421.61 million previously.

In a filing with Bursa Malaysia today, the bank said net interest income improved by RM37.4 million or 11.4 per cent year-on-year while net interest margin (NIM) came in higher at 2.5 per cent.

It said loans, advances and financing declined by 0.5 per cent year-on-year due to the soft economic environment over the year.

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However, Alliance Bank said it is committed to grow its loans, advances and financing portfolios in the current financial year ending March 31, 2022.

The bank said its customer-based funding stood at RM47.2 billion and maintained a high current account savings account (CASA) ratio of 49.4 per cent.

“Through our funding strategy, the group’s liquidity coverage and loans-to-funds ratios stood at 170.3 per cent and 84.8 per cent respectively,” it said.

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It said the bank would continue to maintain ample liquidity ratios and ensure a sufficient liquidity buffer to mitigate any payment shocks resulting from the uncertainties caused by Covid-19.

Alliance Bank said given the ongoing impact of the Covid-19 pandemic, it would continue to extend its Payment Relief Assistance (PRA) packages to help individuals and businesses facing cash flow constraints.

It said to date, the bank has provided over RM7.6 billion in payment relief assistance of which close to RM2.4 billion in moratoria to businesses and individuals.

“The group has simplified the application process to make it easier for customers to obtain a PRA package. With the continued restriction in physical movement, the group continues to focus on acquiring clients through digital channels,” it said.

The bank said it recently launched Alliance Digital SME unsecured loan for business owners in June 2021 to digitally acquire and serve smaller small and medium enterprise (SME) clients with an annual turnover between RM200,000 and RM5 million. — Bernama