KUALA LUMPUR – CGS CIMB Research expects Alliance Bank Malaysia Bhd’s net profit to be flattish at RM105 million in the third quarter of the financial year 2021 (Q3FY21) versus RM104 million in Q2FY21.
In a research note today, it said the expectation is premised on estimated quarter-on-quarter (q-o-q) decline in non-interest income due to lower investment income offsetting the potential q-o-q drop in the Q3FY21 loan loss provisioning.
Alliance Bank’s net profit slipped to RM103.94 million in the second quarter ended September 30, 2020 (Q2FY21) from RM115.52 million in the same quarter last year.
Revenue, however, rose to RM474.45 million from RM427.43 million previously on the back of an improvement in the non-interest income, the bank said.
For the six-month period, Alliance Bank’s net profit rose to RM208.26 million from RM192.21 million in the same period last year while revenue grew 7.6% year-on-year to RM896.1 million.
CGS-CIMB has raised its target price for Alliance to RM1.83 from RM1.63 following the rollover to end-the 21F. – Bernama, November 28, 2020
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