Alliance Bank's proposed rights issue to boost CET1

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PETALING JAYA: Alliance Bank Malaysia Bhd's surprise rights issue proposal will shore up its Common Equity Tier 1 (CET1) ratio to a more comfortable 13.5%, although there would be some dilution to financial year 2026 (FY26) earnings per share.

Management remains optimistic about sustaining this momentum, in addition to focusing on customer acquisition, enhancing product and channel offerings to boost fee income, and expanding its Islamic banking propositions under the Acceler8 strategy,” added TA, which is not making changes to its earnings estimate at this point.

The research firm also expects the bank, the country’s smallest by assets, to be able to maintain a dividend payout of at least 40% for FY25.“We maintain the stock’s target price at RM5.80 and reiterate our Buy recommendation,” said TA.

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Category: EconomyBusiness

Markets: MalaysiaSingapore

Topics: Banking /Business/Business News Alliance Bank Rights issue CET 1

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-03-24 @ 11:43:00 (4 days ago)

News Timezone: GMT +8:00

News Source URL: thestar.com.my

Language: English

Article Length: 679 words

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Sentences: 22 lines

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News ID: 27267735

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