KUALA LUMPUR (Aug 27): As banks posted weaker performance in their latest quarter, Alliance Bank Malaysia Bhd eked out year-on-year (y-o-y) net profit growth of 36.02% to RM104.31 million in the first quarter ended June 30 (1QFY21), from RM76.69 million.

This was helped by higher investment income, lower operating expenses, and absence of allowance for expected credit losses on financial investments that was done for one large account in 2QFY19.

This more than offset higher allowance for credit losses arising from the loan moratorium and lower interest income during the quarter, according to its filing.

The group's revenue or net income during the quarter grew 4.1% year-on-year to RM421.61 million from RM405.01 million. Net interest margin came in at 2.21%.

On a business segment basis, net income came in higher from its consumer banking, financial markets and investment banking segments, while its business banking segment dragged — despite higher profit before tax — as other operating income was impacted by the Movement Control Order.

On prospects, Alliance said it is “paying close attention to managing credit and liquidity risks”, and that it will also be working out the details of post-moratorium repayment arrangements with its customers.

"The group continues to maintain ample liquidity coverage and loan to funds ratios for all entities under the group, and we are ensuring cash levels at our branches and self-service terminals remain ample at all times. We will also remain vigilant in managing our credit portfolios and conservative in our provisioning practices,” it added.

Shares of Alliance Bank settled unchanged at RM2.14 today, valuing the financial group at RM3.31 billion. Year to date, the counter has retreated 18.63%.