ALLIANCE Bank Malaysia Bhd registered a lower net profit of RM134 mil for its third quarter ended Dec 31, 2019 from RM148.93 mil in the same quarter of the previous year.
Revenue, however, rose to RM424.32 mil from RM418.4 mil previously.
For the nine-month period, net profit decreased to RM326.21 mil from RM425.82 mil in the same period in the preceding year, while revenue rose to RM1.26 bil from RM1.22 bil previously.
In a statement today, Alliance Bank said the its net interest margin stood at 2.38%.
“Margin erosion from the Overnight Policy Rate (OPR) cut was mitigated by the bank’s stronger growth in better risk-adjusted return loans,” it said.
“The bank has also been repricing its deposit products and strategically rebalancing its available-for-sale investment portfolio to cushion the OPR cut impact.”
Meanwhile, its gross loans grew 5.5% year-on-year to RM43.5 bil, with small and medium enterprise (SME) loans improving by 11% to RM9.3 bil, despite the industry recording a contraction of 1.7%.
Group CEO Joel Kornreich said in the coming months, the bank would launch several additional digital solutions to improve its customer experience, and this included the mobile BizSmart app for business owners who need to approve transactions on-the-go.
The mobile app will also provide SMEs with quick and simple trade financing.
“We are confident that our Key Transformation initiatives, complemented by our digital innovations, will enable us to deliver sustainable growth,” he added. – Feb 28, 2020, Bernama
