ALLIANCE BANK'S NET PROFIT SLIPS TO RM100.5 MLN IN Q3 FY21

KUALA LUMPUR, Feb 26 -- Alliance Bank Malaysia Bhd registered a lower net profit of RM100.5 million in the third quarter ended Dec 31, 2020 (Q3 FY21) from RM134.0 million in the same quarter in FY20 due to higher credit cost.

Revenue, however rose to RM475.7 million from RM422.5 million, it said in a filing to Bursa Malaysia today

Its net income was higher by RM53.2 million or 12.6 per cent mainly due to higher net interest income, treasury and investment income, brokerage income and wealth management income.

bootstrap slideshow

Net Interest Margin decreased to 2.26 per cent mainly due to impact of Overnight Policy Rate cuts of 15 basis points, while other operating income increased RM46.6 million or 50.1 per cent.

Operating expenses were lower by RM18.1 million or 8.7 per cent from all lines of expenses. 

In addition, its customer-based funding stood at RM46.7 billion. The group was able to maintain a high Current Account/Savings Account (CASA) ratio of 44.6 per cent.

"The group will continue to prioritise capital conservation in order to support future business expansion, given the uncertainties caused by COVID-19.

"Including the adoption of Transitional Arrangements for Regulatory Capital Treatment of Accounting Provisions by Bank Negara Malaysia, we continue to maintain strong capital levels, with Common Equity Tier-1 (CET 1) ratio at 16.3 per cent, Tier-1 Capital ratio at 17.3 per ent and total capital ratio at 21.7 per cent, an improvement of 1.0 per cent," it added.

As for segment, its consumer banking's net income was higher by RM4.9 million and net interest income increased by RM6.6 million. The segment’s assets stood at RM21.3 billion.

Net income of its business banking segment, comprising corporate, commercial and Small and Medium Enterprises (SMEs) banking, increased by RM5.8 million year-on-year mainly due to higher interest income.

The segment’s assets registered a growth of RM1.4 billion.

In a separate statement, Alliance Bank said it had provided RM6.3 billion in targeted assistance to individuals and business customers in the nine months period for the financial year ending March 31, 2021 (9M FY21).

About RM5.2 billion was for Payment Relief Assistance packages, and RM1.1 billion was for Extended Moratorium.

The bank has also disbursed more than RM600 million in Special Relief Fund to help SMEs.

In addition to financial assistance, the bank has further made available various non-financial solutions to help businesses stay resilient and thrive.

-- BERNAMA