Allied Bank’s profit jumps 95% in 2023

Allied Bank (ABL) posted a profit-after-tax of Rs41.3 billion ($146.5 million) in 2023, a growth of nearly 95% than earnings recorded in the preceding year, according to a stock notice on Tuesday.

As per ABL’s consolidated financial results, the bank’s earnings per share clocked in at Rs36.07 as opposed to Rs18.56 in 2022.

ABL’s board of directors in its meeting also announced a final cash dividend of Rs4 per share i.e. 40%, which is in addition to the interim dividend already paid at Rs8 per share i.e. 80%.

As per the income statement provided to the Pakistan Stock Exchange (PSX), the net interest income of ABL amounted to Rs112.9 billion in 2023, up over 69%, as compared to Rs66.7 billion registered in SPLY.

Allied Bank’s earnings jump in 2QCY23

The increase was led by a higher interest rate, which rose to 21% in 2023.

During the period under review, the bank’s fee and commission income jumped by 32% YoY to Rs11.84 billion, from Rs8.95 billion.

The bank posted a significant increase of 15% under its income generated from foreign exchange, which stood at Rs9.17 billion, as compared to Rs7.95 billion.

Consequently, ABL’s non-markup income stood at Rs25.59 billion in 2023, in comparison to Rs21.45 billion, an increase of 19% on a yearly basis.

Meanwhile, ABL saw its non-interest expenses balloon to Rs49.7 billion in 2023, compared to Rs41.6 billion in the preceding year.

On the tax front, the bank paid Rs45.5 billion in 2023, significantly higher i.e. 78% than Rs25.5 billion the amount paid in 2022.