Allied Bank’s earnings jump in 2QCY23

Allied Bank (ABL) posted a profit-after-tax of Rs9.95 billion in the second quarter of 2023 (April-June), a growth of over 402% than earnings recorded in the same period of the preceding year, according to a stock notice on Thursday.

The quarterly earnings per share clocked in at Rs8.69 as opposed to just Rs1.73 in same period last year (SPLY).

ABL’s board of directors in its meeting also announced an interim cash dividend of Rs2.5 per share i.e. 25%, which is in addition to interim dividend already paid at Rs2.5.per share.

As per the income statement provided to the Pakistan Stock Exchange (PSX), the net interest income of ABL amounted to Rs30.2 billion in Q2 of 2023, up nearly 102%, as compared to Rs14.97 billion registered in SPLY.

The increase was led by higher interest rate, which rose to 21% in June 2023 from 13.75% recorded in SPLY.

During the period under review, the bank’s fee and commission income jumped by 39% YoY to Rs2.78 billion, from Rs2 billion.

It is pertinent to mention that the bank posted a significant decline under its income generated from foreign exchange, which stood at Rs1.11 billion, as compared to Rs3.54 billion.

As a result, ABL’s non-markup income stood at Rs4.97 billion in Q2 of 2023, in comparison to Rs6.74 billion, a decline of 26% on a yearly basis.

On the tax front, the bank paid Rs11.98 billion in 2QCY23, higher than Rs10.07 billion the amount paid in 2QCY22.