KUALA LUMPUR: Alliance Bank Malaysia Bhd's net profit rose 45 per cent to RM212.16 million in the first quarter (Q1) ended June 30, 2022 from RM147.01 million a year ago.
The bank said this was driven by higher net interest income and lower allowance for expected credit losses.
However, its revenue fell 1.84 per cent to RM474.07 million from RM482.96 million a year ago.
Coupled with pre-provision operating profit at RM263.5 million, its cost-to-income ratio stood at 44.4 per cent.
Alliance Bank said proactive credit management had resulted in net credit cost decreasing 25.5 basis points (bps) year on year (yoy) to -3.7bps.
"Current account saving account (Casa) deposits in the bank grew 5.3 per cent yoy, resulting in an improved Casa ratio of 50 per cent, the highest in the industry.
"Overall loans grew 6.7 per cent yoy driven by growth in business banking loans, which increased 28.4 per cent yoy," it said.
On its net interest income, the bank said income improved 7.6 per cent yoy to RM392.1 million due to higher loans volume and overnight policy rate (OPR) hike, while client-based fee income grew 7.5 per cent yoy due to higher wealth management income.
"The group's allowance for expected credit losses on loans, advances, financing and other financial assets recorded a write-back of RM17.3 million primarily due to a recovery from a large account during the quarter," it said.
Alliance Bank said it would focus on acquiring more customers by scaling up its core segments of small and medium enterprise (SME) and consumer banking.
The bank will also capitalise on its consumer and business banking franchises, as well as enhancing productivity and efficiencies by streamlining processes.
"In addition to the above, the group will continue to focus on addressing asset quality concerns by continuing to prioritise customer engagement and continue managing its loan portfolio with refined credit underwriting to support the above business growth.
"With these focus areas, and continuing effort to apply prudent management practices, the group expects to deliver sustainable returns to our shareholders while strengthening our market presence," it added.