Alliance Bank Shares Up 1.82 Pct After 1Q Net Profit Jumps 25 Pct

KUALA LUMPUR, Aug 27 (Bernama) -- Alliance Bank Malaysia Bhd’s share price rose 1.82 per cent in early trade on Thursday, after the company posted a higher net profit in the first quarter ended June 30, 2026 (1Q FY2027), yesterday.

At 10.16 am, the bank’s share price rose by nine sen to RM5.02, with one million shares traded.

Alliance Bank’s net profit rose to RM248.32 million in 1Q FY2027 from RM198.70 million in the same period last year, representing a 25 per cent increase year-on-year (y-o-y), driven by lower allowance for expected credit losses and higher revenue, partially offset by increased operating expenses.

Revenue for the quarter under review rose by 2.5 per cent to RM630.93 million from RM615.32 million, with net interest income growing 2.5 per cent y-o-y to RM511.7 million, supported by growth in loans, advances and financing as well as investment securities.

In a note, Hong Leong Bank Investment Bhd (HLIB) said the results beat its expectations, accounting for 28.8 per cent and 28.7 per cent of its and the street’s full-year estimates, respectively.

Hence, it said Alliance Bank remains on track for 7.5-10 per cent loan growth in FY2027, although management is deliberately shifting towards lower-risk secured and business lending while moderating unsecured consumer growth.

“Consumer loan growth is expected to ease to seven to nine per cent, while commercial and corporate loans should sustain double-digit growth.

“This mix shift, alongside intense deposit competition, has prompted management to lower FY2027 net interest margin (NIM) guidance to 2.23-2.28 per cent, from 2.28-2.35 per cent,” it said.

HLIB also said that with loan growth continuing to outpace the industry and improving risk-adjusted returns becoming a greater priority, there is scope for stronger shareholder distributions as Alliance Bank progresses towards completing ACCELER8.

“Factoring in the FY2026 annual numbers and the positive results surprise, we toned up our FY2027 and FY2028 earnings estimates by 4.3 per cent and 0.9 per cent, respectively.

“We introduce our FY2029 projections, implying an earnings growth of 9.8 per cent y-o-y, while maintaining our “buy” call on the bank with a target price of RM6.00,” it added.

-- BERNAMA