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