Alliance Bank’s net profit up to RM172.7m in Q2 FY2022

The bank said it is accelerating cross-selling value propositions to its customers to increase market penetration and fee-based income and enhancing productivity and efficiency by streamlining processes through centralising functions and improving branch productivity. — File pic
The bank said it is accelerating cross-selling value propositions to its customers to increase market penetration and fee-based income and enhancing productivity and efficiency by streamlining processes through centralising functions and improving branch productivity. — File pic

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KUALA LUMPUR, Nov 26 — Alliance Bank Malaysia Bhd’s net profit for the second quarter ended Sept 30, 2021 (Q2 FY2022) rose to RM172.74 million from RM103.9 million in the same quarter last year despite lower revenue.

Revenue dropped to RM452.9 million from RM474.45 million previously, it said in a filing with Bursa Malaysia.

Alliance Bank said the group’s profit after taxation of RM172.7 million for the quarter was 66.2 per cent or RM68.8 million higher compared to RM103.94 million in the previous corresponding quarter, mainly due to higher interest income and lower credit cost.

“The key quarter highlights were net interest income was higher by RM19.2 million or 5.7 per cent, mainly due to lower funding cost and net interest margin was better by 24 basis point (bps) at 2.47 per cent.

“Other operating income decreased by RM40.7 million or 30.1 per cent due to lower treasury and investment income and wealth management income, operating expenses increased by RM5 million, mainly from personnel cost and net credit cost was at 7.5 bps,” it said.

For prospects, it said the group will focus on growing the business in three areas which are scale up small and medium enterprise (SME) and consumer banking by equipping relationship managers with digital tools to serve high-value customers and growing its commercial teams.

Besides, the bank said it is accelerating cross-selling value propositions to its customers to increase market penetration and fee-based income and enhancing productivity and efficiency by streamlining processes through centralising functions and improving branch productivity.

In statement, group chief executive officer Joel Kornreich said the bank plans to establish consumer banking relationships with 70 per cent of its business owner base and attract over 100,000 new customers annually.

“We are now focused on helping our customers to reposition to capture growth opportunities as the market recovers,” he said.

Alliance Bank also declared an interim single tier dividend of 8.3 sen per share, payable of Dec 30, 2021. — Bernama

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