Alliance Bank Malaysia Berhad today reported a robust 10.6% year-on-year (YoY) growth in net profit after tax to MYR 405.3 million ($88.8 million) for the first half of the financial year ending 31 March 2026 (1H FY2026) (1H FY2025: MYR 366.6 million [$80.2 million]). This was driven by sustained loan growth and higher non-interest income, reflecting the bank’s continued focus on delivering value to customers and shareholders. Revenue for 1H FY2026 rose 8.4% YoY to MYR 1.24 billion ($271.9 million).

For the second quarter, net profit grew 8.8% YoY to MYR 206.6 million ($45.2 million), while revenue increased 3.4% to MYR 626.2 million ($137.3 million), reflecting continued momentum across key segments.

A first interim dividend of 9.37 sen per share is proposed for 1H FY2026. This translates to a dividend payout ratio of 40%, which is in line with the bank’s dividend payout guidance of between 40% to 50%.

Based on the share price of MYR 4.41 ($1.0) as at 14 November 2025, Alliance Bank delivered an impressive total shareholder return of 124% over five years and 39% over three years, reflecting its ability to deliver consistently through disciplined execution and a focus on sustainable growth.

For 1H FY2026, the bank’s net interest income rose 4.0% YoY to MYR 993.9 million ($217.9 million), supported by higher loan volumes across several segments, while the net interest margin (NIM) stood at 2.37%, within guidance. Non-interest income expanded 30.7% YoY to MYR 247.6 million ($54.3 million), contributed by stronger foreign exchange sales and trade fees, higher banking service fees, and increased treasury and investment income.

The bank’s cost-to-income ratio (CIR) remained healthy at 46.4% (1H FY2025: 46.5%), reflecting continued investment in technology and digital infrastructure alongside prudent expense management.

Alliance Bank’s overall loans momentum continued with an 8.1% YoY growth, driven by broad-based expansion across all business segments. Mortgage loans grew 11.2% YoY, SME loans increased 7.2%, commercial loans expanded 11.6%, while other consumer loans rose 7.4%, underpinned by strong demand in credit cards and share margin financing. Customer deposits strengthened by 12.5% YoY, supported by a 19.9% rise in fixed deposits and a 7.7% increase in CASA deposits, maintaining one of the highest CASA ratios in the industry at 39.1%.

The bank’s net credit cost stood at 23.2 basis points, while the gross impaired loans (GIL) ratio improved to 1.91% (vs 2.02% last year).

Alliance Bank maintained strong capital and liquidity positions, further reinforced by the successful completion of its rights issue in July 2025. The bank’s Common Equity Tier-1 (CET1) ratio strengthened to 13.6% (1H FY2025: 12.4%), while its total capital ratio rose to 18.2% (1H FY2025: 17.1%). Liquidity also remained robust, with a Liquidity Coverage Ratio (LCR) of 160.2% (industry: 151.5%) and a Loan-to-Fund Ratio (LFR) of 87.3% (industry: 82.6%).

“Our first-half results demonstrate the strength of our diversified business model and the disciplined execution of our strategy priorities. We achieved solid earnings growth, driven by robust loan expansion and higher fee-based income. These outcomes highlight the resilience of our franchise and reinforce our ability to deliver sustainable growth across key customer segments,” said Mr Kellee Kam, group chief executive officer of Alliance Bank.

Acceler8 2027 strategy continues to deliver broad-based progress beyond midpoint

Now having passed the midpoint of the Acceler8 2027 transformation strategy, Alliance Bank continues to strengthen its position as The Bank For Life, delivering meaningful progress across all eight strategic pillars.

During 1H FY2026, the bank achieved 9% YoY growth in SME while consumer loans rose 10.4%. Business Banking client fee income grew 12% YoY to MYR 120 million ($26.3 million), supported by transactional fee income growth. Sustainability Impact Programme (SIP) financing has achieved 70% of full-year stretch targets, underscoring momentum in key growth areas.

Alliance Bank also strengthened its regional footprint, achieving notable growth in loans and deposits across Sabah, Sarawak, Penang and Johor, with Sabah newly added as a growth corridor. The capital market segment recorded a 34% YoY increase in revenue, supported by robust corporate finance mandates. Meanwhile, the Islamic banking business posted revenue growth of 7% YoY, driven by continued expansion of the Halal in One programme and targeted propositions for SME clients.

“We have passed the midpoint of our Acceler8 2027 transformation and this marks a significant milestone that reflects the resilience, agility and customer focus of our teams. Achieving our sustainable banking target ahead of schedule further highlights our commitment to embedding ESG principles at the core of our business. We remain focused on driving innovation, supporting our clients’ growth, and delivering long-term value to our shareholders and communities,” said Mr Kellee Kam.

Advancing sustainability commitments

Alliance Bank continues to accelerate its sustainability agenda with significant progress towards its long-term goals. Since FY2022, the bank has achieved a cumulative MYR 15.5 billion ($3.4 billion) in new sustainable banking business, surpassing its original MYR 15.0 billion ($3.3 billion) target by FY2027. Following this positive trajectory, the target has been revised to MYR 17 billion ($3.7 billion) by FY2028.

In 1H FY2026, the bank approved MYR 387 million ($82.0 million) in financing under its Sustainability Impact Programme (SIP) and completed several landmark partnerships to advance ESG readiness among its clients. These include collaborations with Control Union to support high-emitting industries in accessing transition financing, AQ Energy to fund solar investments and SME client projects under the Low Carbon Transition Facility, and Rental Works to promote circular economy solutions through IT equipment leasing. Alliance Bank also partnered with the Penang State Government to launch a MYR 100 million ($21.2 million) ESG Transition Fund for manufacturers, beginning with a MYR 20 million ($4.2 million) pilot tranche.

Further demonstrating leadership in sustainable finance, the bank is part of the issuance of MYR 230 million ($48.8 million) in sustainability bonds, co-developed Sunway Iskandar Development Sdn Bhd (SIDB)’s inaugural Sustainable Finance Framework, and entered into a Green Township financing deal with Sunway Iskandar, supporting Malaysia’s first township to achieve MARC Gold sustainability grading.

ABMB also granted a MYR 88.4 million ($18.7 million) green financing facility for LBS Bina Group Berhad’s 43MWp solar farm in Senawang under the Corporate Green Power Programme (CGPP). The project is expected to generate approximately 53,000 MWh of clean energy annually, effectively offsetting 35,000 tonnes of carbon emissions.

These milestones have earned Alliance Bank multiple regional awards, including the ASEAN Banking Awards 2025 (ESG), Qorus Reinvention Awards APAC 2025 (Silver) and Asia HRD Awards 2025 (Silver), recognising its contributions to ESG adoption and talent development.

Alliance Bank was also recently honoured with three Gold and two Silver awards at the HR Excellence Awards 2025 — Gold for Workplace Culture, Talent Acquisition and Employer of the Year. These accolades underscore the bank’s unwavering commitment to people development, a core driver of its long-term success.

Financial highlights for 1H FY2026

Key results

• Revenue grew 8.4% YoY to MYR 1.24 billion ($271.9 million)
• Net interest income rose 4.0% YoY to MYR 993.9 million ($217.9 million), with NIM at 2.37%
• Non-interest income increased 30.7% YoY to MYR 247.6 million ($54.3 million)
• Cost-to-income ratio: 46.4%
• Gross loans: +8.1% YoY
• Customer deposits: +12.5% YoY, with CASA ratio at 39.1%
• Net credit cost: 23.2 basis points
• Gross impaired loans ratio: 1.91%
• Net profit after tax: MYR 405.3 million ($88.8 million) (+10.6% YoY)
• Liquidity coverage ratio: 160.2%
• Dividend payout ratio: 40%, with 9.37 sen interim dividend