KUALA LUMPUR (July 11): Alliance Bank Malaysia Bhd is aiming to record a 10% growth in net profit for its financial year ending March 31, 2019 (FY19), supported mainly by a targeted 10% loan growth and a lack of recurring expenses from its transformation programme.

Meanwhile, the bank’s FY19 revenue is expected to grow 6%, Alliance Bank chief executive officer Joel Kornreich said at a press briefing, following the group's annual general meeting today.

“Loan growth will be primarily supported by (growth in) Alliance ONE accounts, the small and medium enterprise (SME) segment and personal financing,” Kornreich said, adding that growth in its Alliance ONE segment is expected to contribute some 70% of overall loan growth.

In its financial year ended March 31, 2018 (FY18), Alliance Bank’s net profit slipped 3.7% to RM493.23 million, largely due to expenses related to its transformation programme, which had included branch consolidation and workforce expansion.

However, the programme had enabled a saving of RM20 million per annum for the group, with additional revenue from the Alliance ONE segment expected to offset further expenses this year, Kornreich said.

The group’s independent and non-executive chairman Tan Sri Datuk Ahmad Mohd Don said the banking industry remains competitive. As one of the smaller players, Alliance Bank would have to continue to work hard, he added.