KUALA LUMPUR (Feb 26): Alliance Bank Malaysia Bhd’s net profit slipped 25% to RM100.46 million in the third quarter ended Dec 31, 2020, from RM134 million a year earlier, due to higher credit cost.

Earnings per share fell to 6.5 sen from 8.7 sen, the group’s filing with Bursa Malaysia showed.

Quarterly revenue grew 12.6% to RM475.7 million, from RM422.47 million previously, on higher net interest income, treasury and investment income, brokerage income and wealth management income.

Net interest income rose marginally by 0.4% to RM243.27 million, from RM242.23 million in the year-ago third quarter.

Net interest margin, meanwhile, decreased by 10 basis points to 2.26%, mainly due to the impact of OPR cuts, while net credit cost stood at 35 basis points.

For the cumulative nine-month period, Alliance Bank  said its net profit was down 5.4% to RM308.71 million, from RM326.21 million in the previous corresponding period, while revenue increased 9.3% to RM1.37 billion, from RM1.25 billion.

Net interest income grew 3.2% to RM749.32 million during the period, from RM726.37 million previously.

Under the consumer banking segment, the bank reported a loss before tax of RM107 million during the nine-month period, versus a profit before tax of RM28 million previously, due to the built up of allowances for expected credit losses related to the economic impact of Covid-19.

Allowances for expected credit losses were higher by RM150.7 million in this nine-month period, largely due to management overlays amounting to RM177.6 million, the bank said.

“We continue to focus on our two key priorities of helping our customers stay resilient during the pandemic and accelerating our digitisation initiatives to acquire more customers: improve client engagement and drive better cost efficiency,” said Alliance Bank group CEO Joel Kornreich.

Shares of Alliance Bank closed five sen or 1.85% lower at RM2.65 today, valuing the bank at RM4.1 billion.