Alliance Bank shares up on positive growth outlook

Alliance Bank is reported to be on track to meet its growth target but has cautioned against an increasingly challenging outlook. — File pic
Alliance Bank is reported to be on track to meet its growth target but has cautioned against an increasingly challenging outlook. — File pic

, Oct 16 — Alliance Bank Bhd’s shares rose during the morning session today on a positive growth outlook.

At 11.32am, the bank’s shares were up four sen to RM3.96 with 48,300 changing hands.

In a research note today, RHB Research said Alliance Bank was seeing a good traction in small and medium enterprises (SMEs) and commercial portfolios.

“This is further helped by a campaign launched recently to top up customers’ working capital lines,” it added.



It said the bank was also on track to achieve its 10 per cent year-on-year growth target, but noted that the bank’s management had cautioned that the outlook was increasingly challenging, where a prolonged economic slowdown might lead to further impairments.

“Alliance Bank’s management flagged that it has received feedback from SME customers whose businesses are being affected by now tighter consumer spending,” it said.

RHB Research added that even though residential mortgages, which made up 39 per cent of the bank’s lending portfolio, was showing signs of growth, the oversupply in the non-residential segment had dampened rental yields and growth.

The research house has maintained its “buy” call on the bank with a target price of RM4.80. — Bernama

Source: The Malay Mail Online





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