Alliance Bank Malaysia Bhd. · MYX:ABMB
Alliance Bank Malaysia Bhd — FY2025 Earnings Presentation
33 slides from Alliance Bank Malaysia Bhd's earnings presentation, May 27, 2025
Slide 1: Analyst Briefing FY2025
Analyst Briefing FY2025 27 May 2025 < Title of Presentation > < by> < Date/Status >
Slide 2: Contents
Contents 1 FY25 Financial Performance ▪ Revenue & Profitability ▪ Assets & Liabilities ▪ Effective Risk Management 2 Going Forward ▪ Group Strategy: ACCELER8 2027 Update ▪ Sustainability ▪ Key Takeaways & Outlook for the Year 3 Appendix: Financial Results ▪ 4QFY25 & FY25 results ▪ Financial ratios 2
Slide 3: ACCELER8 2027: FY25 in review
ACCELER8 2027: FY25 in review 7 Launched the ESG 2.0 Survey Report titled “The Path to Sustainable 1 Launched BizSmart 4 Branch relocation & Impact-Sectoral Insights of Challenge Accelerator upgrades Malaysian SMEs” (Jan’25) a cornerstone initiative to • Relocation of Alor Setar Branch empower aspir
Slide 4: FY25 Performance Highlights
Executive Summary FY25 Performance Highlights 1 Revenue & ▪ Revenue grew 12.3% y-o-y to RM2.27 billion Profitability ▪ Net interest income grew 13.2% y-o-y ➢ Net interest margin at 2.45% ▪ Non-interest income grew 7.7% y-o-y ➢ FX sales/trade fees (+16.2% y-o-y) ➢ Wealth management (+9.6% y-o-y exclu
Slide 5: NPAT grew 8.7% y-o-y to RM750.7 million
Revenue & Profitability NPAT grew 8.7% y-o-y to RM750.7 million FY24 FY25 Y-o-Y Change (Better / (Worse) Income Statement RM mil RM mil RM mil % Net Interest Income 1,720.1 1,946.6 226.4 13.2% Non-Interest Income 300.3 323.3 23.0 7.7% Total Revenue 2,020.5 2,269.9 249.5 12.3% OPEX 973.7 1,088.5 (114
Slide 6: Net interest income grew 13.2% y-o-y
Revenue & Net interest income grew 13.2% y-o-y Profitability Net Interest Income Net Interest Margin Trend RM mil +13.2% y-o-y 2.64% 1,946.6 1,652.7 1,720.1 2.53% 1,480.2 2.48% 1,360.9 2.45% -3bps YoY 2.30% FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 Y-o-Y impact: mainly driven by higher loans
Slide 7: Non-interest income grew 7.7% to RM323.3 million
Revenue & Non-interest income grew 7.7% to RM323.3 million Profitability ▪ Non-interest income: +7.7% y-o-y: ➢ FX Sales (+16.1% y-o-y) & Trade Fees (+16.4% y-o-y) ➢ Wealth Management (+9.6% y-o-y excluding one-time Banca business model fee in FY24) ➢ Treasury & investment income (+RM16.2 million or
Slide 8: Cost to Income Ratio at 48.0%
Revenue & Cost to Income Ratio at 48.0% Profitability a) Operating expenses up 11.8% y-o-y mainly from higher Operating Expenses (OPEX) personnel & IT expenses: RM mil 13% of 3% of RM mil increase increase OPEX CIR from from higher 36% of business agency fees, increase development, professional & fr
Slide 9: Net credit cost at 31.9 bps
Effective Risk Net credit cost at 31.9 bps Management Net Credit Cost a) Net credit cost at 31.9 bps [vs 25.8 bps in FY24]: ➢ BAU provision: 26.4 bps [vs 60.6 bps in FY24] BAU Provision bps Overlays/Pre-emptive provision ➢ Pre-emptive provision: 5.5 bps [vs -34.8 bps overlays Total Net Credit Cost w
Slide 10: Gross impaired loans ratio improved to 1.83%
Effective Risk Gross impaired loans ratio improved to 1.83% Management Gross Impaired Loans (GIL) SME GIL (RM mil) GIL ratio (%) 30+ dpd (%) RM mil Total GIL ABMB GIL ratio 2.1% 2.2% 2.1% 2.0% 2.0% 1.9% 1.9% 1.8% 1.9% 1.9% 2.11% 2.17% 2.02% 1.97% 1.83% 276 282 287 303 306 63% secured, Mar-24 Jun-24
Slide 11: GIL ratio: Consumer Segment
Effective Risk GIL ratio: Consumer Segment Management Classic Mortgage Personal Financing GIL (RM mil) GIL ratio (%) 30+ dpd (%) GIL (RM mil) GIL ratio (%) 30+ dpd (%) 2.0% 2.3% 2.2% 5.0% 5.5% 5.4% 5.5% 2.0% 1.8% 4.8% 1.3% 1.3% 1.2% 1.2% 0.9% 221 1.4% 1.4% 1.3% 1.3% 1.4% 202 214 208 171 45 45 43 44
Slide 12: Strong loans growth, supported by funding
Assets & Strong loans growth, supported by funding Liabilities Gross Loans Customer Deposits RM bil RM bil +12.0% Y-o-Y y-o-y 62.4 CASA ratio 41.6% 41.0% 55.7 6.8 +8.4% 6.3 8.6 +14.7% 65.8 Corporate +15.8% Y-o-Y 7.5 57.4 y-o-y 2.8 Commercial Other 16.2 +10.6% deposits 3.5 14.7 SME +19.9% Fixed 36.0
Slide 13: Liquidity and capital position remain strong
Effective Risk Liquidity and capital position remain strong Management Liquidity: LCR, LFR & NSFR Capital Position 171.6% CET 1 Tier 1 Total Capital 163.0% 156.8% Liquidity 149.5% 152.1% Coverage Ratio (LCR) 16.8% 16.7% Net Stable 114.8% 115.0% 117.9% 13.2% 13.4% 113.7% 112.9% Funding Ratio (NSFR) E
Slide 14: FY25 dividend payout at 40%
Shareholder FY25 dividend payout at 40% Value Dividend and Payout Ratio Net Assets per Share Total Shareholders Return RM % RM mil 2nd Interim 1st Interim Dividend Payout Ratio Total 4-year CAGR: +5.2% Shareholders Return (TSR) 157% 50% 50% 50% 4.95 40% 4.63 Dividend 38.3% 25% 4.36 Yield 4.04 4.14 3
Slide 15: Contents
Contents 1 FY25 Financial Performance ▪ Revenue & Profitability ▪ Assets & Liabilities ▪ Effective Risk Management 2 Going Forward ▪ Group Strategy: ACCELER8 2027 Update ▪ Sustainability ▪ Key Takeaways & Outlook for the Year 3 Appendix: Financial Results ▪ 4QFY25 & FY25 results ▪ Financial ratios 2
Slide 16: ACCELER8 2027: FY25 Key Success Metrics (1/3)
Group Strategy: ACCELER8 2027: FY25 Key Success Metrics (1/3) Acceler8 2027 Acquisition Momentum Deepening relationships Islamic Franchise ABG loan market share (%) Total Non-Interest Income (RM mil) AIS Revenue (RM mil) 2.75% 23.6% y-o-y 539.0 436.1 2.58% 7.7% y-o-y 2.49% 323.3 300.3 2.45% 2.38% 2.
Slide 17: ACCELER8 2027: FY25 Key Success Metrics (2/3)
Group Strategy: ACCELER8 2027: FY25 Key Success Metrics (2/3) Acceler8 2027 1 Continue velocity on SME expansion 3 Broaden consumer business, targeting strategy attractive segments SME* YoY Loan Growth Consumer YoY Loan Growth *Based on BNM SME Definition Target: FY25 Group Target: FY25 Group Loan 8
Slide 18: ACCELER8 2027: FY25 Key Success Metrics (3/3)
Group Strategy: ACCELER8 2027: FY25 Key Success Metrics (3/3) Acceler8 2027 5 Become regional champion for selected 7 Accelerate Islamic business, leveraging economic corridors unique propositions Regional YoY Growth (Sarawak, Penang and Johor) AIS YoY Revenue Growth Target: Surpass Total Regional L
Slide 19: Sustainability Achievement
Sustainability We continue to make progress against our Topline Goals Grow our new Help customers adopt Reduce the Bank’s 1 sustainable banking business 2 sustainable lifestyles and business practices 3 greenhouse gas (GHG) emissions footprint Cumulative RM15.0 Reduce customers under C5a Reduce Scop
Slide 20: Key Updates on Corporate Activities
Key Updates Key Updates on Corporate Activities Long Term Incentive Plan New Building Move Proposed Rights Issue (“LTIP”) • Fit-Out Works Status: Overall >70% Rationale (recap) Why LTIP? completed • Accommodative economy for continued • Reward Eligible Employees who are vital to the continued growth
Slide 21: Key Takeaways for FY25
Summary Key Takeaways for FY25 ▪ Management guidance: guidance all met. FY25 FY25 ▪ Business growth: Guidance Actual ➢ Strong loans growth momentum (12.0% y-o-y), driven by all core segments. ➢ Treasury assets grew 8.9% y-o-y. Gross Loans 8% - 10% 12.0% ▪ Record Profitability: ➢ Revenue up 12.3% to
Slide 22: Outlook for the Year
Summary Outlook for the Year ▪ Economic outlook: FY25 FY26 ➢ GDP expected between 4.5% to 5.5% (1Q’25: 4.4% Actual Guidance vs 2024: 5.1%). ➢ Remain cautiously optimistic for FY26: Gross o accommodative monetary policy 12.0% 8 - 10% Loans o resilient domestic demand with promising FDI o global trade
Slide 23: Contents
Contents 1 FY25 Financial Performance ▪ Revenue & Profitability ▪ Assets & Liabilities ▪ Effective Risk Management 2 Going Forward ▪ Group Strategy: ACCELER8 2027 Update ▪ Sustainability ▪ Key Takeaways & Outlook for the Year 3 Appendix: Financial Results ▪ 4QFY25 & FY25 results ▪ Financial ratios 2
Slide 24: 4QFY25 NPAT grew 5.8% q-o-q to RM197.5 million
Key Highlights: 4QFY25 NPAT grew 5.8% q-o-q to RM197.5 million Financial Performance Net Interest Income & Non Interest Income & Revenue Islamic Net Financing Income NOII Ratio RM mil RM mil RM mil Client Based Non Client Based 605.6 NOII Ratio 539.8 561.3 563.2 516.2 491.2 494.5 496.2 446.7 464.7 1
Slide 25: 4Q FY2025: Q-o-Q Income Statement
4Q FY2025: Q-o-Q Income Statement Q-o-Q Change 3QFY25 4QFY25 ▪ Revenue grew by RM2.0mil or 0.4% Income Statement Better / (Worse) q-o-q due to: RM mil RM mil RM mil % ➢ Net interest income: +RM1.6mil or 0.3% Net Interest Income 369.4 371.4 q-o-q mainly due to higher loans volume. Islamic Net Financi
Slide 26: FY25 NPAT grew 8.7% y-o-y to RM750.7 million
Key Highlights Y-o-Y: FY25 NPAT grew 8.7% y-o-y to RM750.7 million Financial Performance Net Interest Income & Non Interest Income & Revenue Islamic Net Financing Income NOII Ratio RM mil RM mil RM mil Client Based Non Client Based NOII Ratio 2,269.9 2,020.5 1,946.6 13.5% 14.9% 14.2% 1,720.1 11.9% 3
Slide 27: 4Q FY2025: Y-o-Y Income Statement
4Q FY2025: Y-o-Y Income Statement Y-o-Y Change ▪ Revenue grew by RM47.1mil or 9.1% y-o-y 4QFY24 4QFY25 Better / (Worse) due to: Income Statement RM mil RM mil RM mil % ➢ Net interest income: +RM49.5mil or 11.1%, driven by higher loans volume. Net Interest Income 342.8 371.4 ➢ Non-interest income: -R
Slide 28: FY2025: Y-o-Y Income Statement
FY2025: Y-o-Y Income Statement Y-o-Y Change ▪ Revenue grew by RM249.5mil or 12.3% y-o-y FY24 FY25 Better / (Worse) due to: Income Statement RM mil RM mil ➢ Net interest income: +RM226.4mil or RM mil % 13.2% y-o-y mainly due to higher loans Net Interest Income 1,309.6 1,451.1 volume. Islamic Net Fina
Slide 29: Q-o-Q Summarised Balance Sheet
Q-o-Q Summarised Balance Sheet Q-o-Q Change ▪ Gross loans grew by 2.4% q-o-q: Dec 24 Mar 25 Balance Sheet ➢ SME loans: +2.1% q-o-q mainly from RM bil RM bil RM bil % Term Loans; Total Assets 81.4 85.2 3.8 4.7% ➢ Commercial loans: +4.1% q-o-q mainly Treasury Assets* 15.0 15.7 0.7 4.5% due to higher d
Slide 30: Y-o-Y Summarised Balance Sheet
Y-o-Y Summarised Balance Sheet Y-o-Y Change ▪ Gross loans grew by 12.0% y-o-y: Mar 24 Mar 25 Balance Sheet ➢ SME loans: +10.6% y-o-y mainly from RM bil RM bil RM bil % Term Loans; Total Assets 76.9 85.2 8.3 10.7% ➢ Commercial loans: +15.8% y-o-y mainly Treasury Assets* 14.4 15.7 1.3 8.9% due to high
Slide 31: Key Financial Ratios
Key Financial Ratios Financial Ratios 4QFY24 3QFY25 4QFY25 FY24 FY25 Return on Equity 10.5% 10.3% 11.0% 10.2% 10.3% Shareholder Earnings per Share 11.5sen 12.1sen 12.8sen 44.6sen 48.5sen Value Net Assets per Share RM4.63 RM4.79 RM4.95 RM4.63 RM4.95 Net Interest Margin 2.45% 2.45% 2.43% 2.48% 2.45% E
Slide 32: Thank You
THANK YOU Disclaimer: This presentation has been prepared by Alliance Bank Malaysia Berhad (the “Company”) for information purposes only and does not purport to contain all the information that may be required to evaluate the Company or its financial position. No representation or warranty, expresse
Slide 33: Alliance Bank
ALLIANCE BANK THE BANK FOR LIFE”
Alliance Bank Malaysia Berhad — FY2025 Earnings Presentation on 6ix