The group’s net profit rose by 18.3% to RM677.85 million compared to RM572.82 million in FY2022.

Meanwhile, its revenue also saw growth, reaching RM1.92 billion, a 2.8% increase from RM1.87 billion previously.

In a filing with Bursa Malaysia, Alliance said the growth was primarily driven by higher loan volume and the impact of overnight policy rate hikes.

Net profit for the fourth quarter ended March 31, 2023 (Q4 FY2023) rose 26.32% to RM130.17 million, from RM103.04 million a year ago.

Revenue for the quarter was up 3.78% to RM468.61 million, from RM451.54 million a year earlier.

The bank reported that its overall loan growth momentum grew 6.2% year-on-year, contributed by a 13.1% increase in small and medium enterprise loans and a 5.2% increase in consumer banking loans, respectively.

Customer-based funding rose by 6.8% year-on-year, with fixed deposits increasing by 18.6%.

Healthy capital, liquidity levels

Alliance highlighted in a separate statement that its funding remains healthy, with the current accounts and savings accounts (Casa) ratio standing at 41.9%, one of the highest in the sector.

It also claimed to be maintaining a strong capital and liquidity position.

“The bank is well capitalised with Common Equity Tier-1 ratio remaining robust at 14.5% and Tier-1 Capital ratio at 15.3% respectively as at March 31, 2023. Total capital ratio was at 19.4%. The strong capital levels support the bank’s expansion plans.

“The bank’s liquidity position is also strong with a coverage ratio of 161.9% (industry average: 154.7%) and loan-to-fund ratio of 87.4%,” it said.

Looking ahead, the bank aims to position itself as a community-focused institution that delivers value to stakeholders through financial performance, excellent customer service, and progress in environmental, social, and governance initiatives.

“The bank is targeting new market segments and business verticals, driving expansion in key economic corridors, as well as driving synergies and value creation through strategic partnerships to support customers at every stage of their journey,” it added.

Alliance has declared a second interim dividend of 10 sen per share, resulting in a total dividend of 22 sen per share. The total dividend payout ratio is 50%, and the dividend will be paid on June 28.

As at 3.52pm, Alliance’s share price was 0.9% or 3 sen higher at RM3.36, giving it a market capitalisation of RM5.22 billion.