Alliance Bank Malaysia Bhd

[winston]

not vested

2QFY26 results above expectations

TP raised to MYR5.10; upgrade to BUY Alliance Bank’s

1HFY26E earnings were above expectations and our FY2628E earnings forecasts are raised by 3-4%.

On rolling forward our valuations to CY26, we have also raised our TP to MYR5.10 from MYR4.80 (CY26E P/BV: 0.9x, COE: 9.9%, ROE: 9.6%, LT growth: 4%).

With a prospective 3year (FY25-FY28E) net profit CAGR of 7%, FY26E dividend yield of 4.2% and a 12% upside to our TP, we upgrade the stock to BUY (from HOLD).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/500371.pdf

[winston]

not vested

Alliance Bank Malaysia Berhad - Solid Growth Momentum
Date: 2025-11-26
Firm: TA
Price Target: 5.30

ABMB delivered a solid performance in the first half of FY26, supported by a stronger net profit driven by healthy revenue expansion, disciplined cost control, and continued improvements in asset quality.

Valuation
Rolling the valuation base year forward to FY27, we raise ABMB’s TP to RM5.30 from RM4.90. Our valuation is based on an implied PBV of c. 0.94x based on the Gordon Growth Model. We reiterate our BUY recommendation on ABMB.

https://klse.i3investor.com/web/priceta ... arch/76835

[winston]

not vested

Alliance Bank Malaysia - Tones Down Loan Growth Optimism
Date: 2025-11-26
Firm: RHB
Price Target: 4.80
Price Call: HOLD

Keep NEUTRAL and MYR4.80 TP, 4% upside.

Alliance Bank Malaysia's 1HFY26 (Mar) results came in line with estimates as the steep 10bps QoQ NIM compression in 2QFY26 (partly a result of July's overnight policy rate (OPR) cut) was offset by better non-II and credit costs.

Nevertheless, sub-peer yields and a potential downgrade to medium-term ROE guidance are likely to cap the stock's potential upside, in our view.

https://klse.i3investor.com/web/priceta ... arch/76854

[winston]

not vested

Alliance Bank Malaysia Berhad - Expecting NIM to Remain Stable
Date: 2025-11-26
Firm: PUBLIC BANK
Price Target: 4.50
Price Call: HOLD

We expect net interest margin (NIM) to stablise QoQ, from active deposit repricing and pre-funding by the management to avoid the seasonal year end deposit competition.

We think delinquencies may pick up slightly in 2HFY26 from its consumer and SME portfolio, dragged by inflationary stress.

We maintain our Neutral call and TP of RM4.50. On a side note, ABMB declared an interim dividend of 9.37sen (2QFY25: 9.5sen), translating to a 40% dividend payout ratio.

Slower loans growth.
Deposits outpaced loans growth.
NIM under pressure.
Non-interest income (NoII) grew 14.6% YoY to RM116.5m
Gross impaired loans (GIL) ratio improved by 5bps QoQ to 1.91%

https://klse.i3investor.com/web/priceta ... arch/76825

[winston]

not vested

ALLIANCE BANK MALAYSIA - Earnings on Track; Credit Costs Still Elevated
Date: 2025-11-26
Firm: AmInvest
Price Target: 4.80

6MFY26 earnings rose 10.6% YoY, in line with expectations, driven by stronger NII and 30.7% NOII growth from treasury gains and banking fees.

Maintain HOLD on ABMB, with an unchanged target price of RM4.80/share, based on CY26 P/BV of 0.9x and a blended ROE of 9.3%. Earnings forecast and 3-star ESG rating remain unchanged.

https://klse.i3investor.com/web/priceta ... arch/76844

[winston]

vested

Why is DBS - Southeast Asia’s largest lender - seeking a stake in one of Malaysia’s smallest banks?

The Malaysian government is prepared to allow DBS to negotiate the purchase of an entire 29.06 per cent stake held by privately owned Vertical Theme, Alliance Bank’s largest shareholder.

DBS had initially sought to acquire Vertical Theme’s shares and subsequently raise its total interest to as much as 49 per cent through further purchases on Bursa Malaysia.

A 49 per cent stake would have effectively given DBS management control and allowed it to consolidate Alliance Bank’s earnings.

However, BNM did not approve that plan, prompting DBS to revise its ambitions and pursue only the Vertical Theme stake.

Under the Financial Services Act (FSA) 2013 — which replaced the Banking and Financial Institutions Act (BAFIA) — individual and institutional shareholdings in local banks are generally capped at 10 per cent and 20 per cent, respectively.

Exceptions may be granted with the finance minister’s approval based on BNM’s recommendation. (Under BAFIA, foreign ownership was capped at 30 per cent.)

Temasek — which currently owns nearly 29 per cent of DBS — holds a 49 per cent stake in Vertical Theme through Duxton Investment & Development Pte Ltd, with the other 51 per cent initially owned by Langkah Bahagia.

Source: CNA

https://www.channelnewsasia.com/asia/db ... ar-5550516

[winston]

not vested

2488 ABMB (BUY)
Padded against the gusts

ABMB remains on track to meet its FY26 loan growth target of 8–10%, supported by aggressive customer acquisition and a tactical "pre-funding" strategy that defends NIM against intense competition.

Asset quality is well-shielded with a GIL of 1.89% and RM146mn in overlays.

Furthermore, a potential 15–20bps CET1 uplift from Basel III implementation in Jul-26 supports a sustainable 40–50% dividend payout and 10% ROE.

Potential re-rating catalysts remain, driven by M&A news flow following the recalibrated 30% target stake by the Singaporean suitor.

We maintain our BUY call on the stock with GGM-TP of RM5.70 (9.6% ROE, 9.6% COE, and 3.0% LTG).

Source: HLIB

[winston]

vested

HLIB Retail Research – Bullish Tracker: ABMB (RM4.73）

Re-rating with M&A optionality

HLIB maintains BUY with a GGM-derived TP of RM5.70, based on 1.0x CY27 P/B (9.6% ROE; 9.6% COE).

Current FY26/27 PBVs of 0.93x/0.88x remain below the pre-pandemic 5-year mean of 1.1x, presenting re-rating potential—particularly on renewed M&A optimism surrounding a Singaporean suitor’s 30% stake.

SME & Mortgage strength

We favour ABMB’s high-yield SME franchise and prudent buffers. Loan growth of 8–10% is on track, driven by steady mortgage expansion and ~700 monthly SME additions, despite geopolitical headwinds.

Strong buffers to cushion NIM pressure

NIM may compress 3–6bps (vs. 2.37–2.43%) on higher funding costs, but pre-funded deposits provide flexibility, with LFR at 87%.

Basel III (Jul-26) should lift CET1 by 15–20bps, supporting 40–50% payout and sustaining ~10% ROE via continued loan growth.

Source: HLIB

[winston]

vested

Alliance Bank posts another record earnings in FY2026, braces for more volatile year ahead

By Syafiqah Salim

Net profit for FY2026 rose 10.1% to RM826.53 million from RM750.53 million, driven by a 42% year-on-year surge in non-interest income, while net interest income grew 3.1%.

Full-year revenue increased 8.65% to RM2.47 billion from RM2.27 billion,

For the fourth quarter ended March 31, 2026, net profit rose 4.33% to RM206.04 million from RM197.49 million a year ago, while revenue grew 5.3% to RM593.08 million from RM563.24 million.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/804630

[winston]

vested

Alliance Bank
(BUY; TP: RM5.70)

All ends well

Summary

ABMB’s FY26 net profit of RM826.5m (+10.1% YoY) met expectations, tracking at 100% and 102.3% of our and consensus full-year estimates.

A second interim dividend of 9.74 sen/share was declared with ex-date on 11 June.

Full-year growth was driven by robust broad-based operational expansion and a lower tax burden. Asset quality remained resilient, with the GIL ratio improving to 1.73% (-16bp QoQ) despite lingering SME pressures.

Management’s cautious optimism for FY27 focuses on disciplined growth and lower credit costs. Maintain BUY with a GGM-TP of RM5.70.

Full report
Within expectations. Alliance Bank (ABMB) posted 4QFY26 core earnings of RM206.0m (-4.3% QoQ, +4.3% YoY), lifting FY26 net profit to RM826.5m (+10.1% YoY). The results met expectations, coming in at 100~102.3% of our and consensus’ full-year estimates, respectively.

Dividend. A second interim dividend of 9.74 sen per share was proposed (4QFY25: 9.90 sen), bringing the total FY26 payout to 19.11 sen per share (FY25: 19.40 sen). The ex-date is scheduled for 11 June 2026.

QoQ. TI and net profit contracted by 6.1% and 4.3% QoQ, respectively. The sequential decline was underpinned by a pull-back in NOII (-32.0%) and NII (-1.5%), dragged down by lower treasury gains and NIM compression from loan/deposit mix adjustments. However, the bottom-line downside was cushioned by lower provisioning and a reduced tax rate.

YoY. TI rose 5.3%, with key driver anchored by NOII (+45.3%), thanks to alleviated treasury gain. That said, the bottom line growth (+4.3%) was hindered by a negative Jaws, where the opex growth outpaced TI marginally by 40bps.

YTD. Full-year core earnings rose 10.1%, driven by broad-based operational momentum and a lower tax burden. Backed by positive Jaws (+10 bps), growth was fuelled by stronger contributions across the board: (i) NOII (+47.1%), (ii) Islamic Banking (+6.5%), and (iii) NII (+2.3%).

Other key trends. Gross loan growth moderated to 7.5% YoY (-40 bps) as key corporate accounts migrated to unrated corporate bonds for financing. Similarly, deposit growth decelerated to 8.8% YoY (-160 bps QoQ), leading to easing loan-to-deposit ratio (LDR) of 93.8% (-280 bps QoQ). Despite lingering SME pressures, the gross impaired loan (GIL) ratio improved to 1.73% (-16 bps QoQ), strengthening loan loss coverage (LLC) to 113.1% (+410 bps QoQ).

Outlook. Management reiterated its cautiously optimistic stance for FY27, underpinned by Malaysia’s supportive liquidity environment and still-resilient domestic growth backdrop, although geopolitical tensions in the Middle East and potential supply chain disruptions could dampen sentiment and raise cost pressures.

Looking ahead, ABMB guides for loan growth (including unrated bonds) of 7.5-10.0%, supported by continued momentum in SME and consumer segments, while NIM is expected to remain within 2.28-2.35% amid persistent deposit competition and a more prudent asset mix.

Credit costs are projected to ease to 27-32bps following FY26’s proactive overlay build-up of c.RM185m, with ROE guided at 10.0-10.5%. Management continues to emphasise disciplined growth, asset quality resilience and sustainable franchise expansion as Acceler8 approaches its final year.

On the asset quality front, the trend is projected to remain well contained, with the GIL ratio continuing to improve despite ongoing SME loan expansion. Management highlighted that credit stress is largely confined to early delinquency stages, with minimal migration into impaired loans.

The uptick in 30-day past due (DPD) was mainly driven by isolated SME and consumer accounts facing timing-related cash flow pressures rather than any broad-based deterioration. Proactive account management, alongside restructuring efforts and support schemes, has helped to curb slippage into non-performing status, thereby supporting a gradual improvement in overall asset quality metrics.

Forecast. Maintained.

Maintain BUY with GGM-TP of RM5.70, premised on 1.0x CY27 P/B (9.6% ROE, 9.6% COE, and 3.0% LTG). This valuation sits slightly below the 5-year pre-Covid mean of 1.1x. We believe a re-rating could be on the cards, catalysed by M&A news flow following the recalibrated 30% target stake by the Singaporean suitor. We continue to like ABMB for its high-yielding SME portfolio and prudent provisioning buffers.

Core net EPS (sen)
FY26a: 49.3
FY27f: 49.8
FY28f: 53.2

Source: HLIB