Profit After Tax of Allied Bank Limited (ABL) registered a growth of 17% and reached Rs 8,601 million for the half year ended June 30, 2016, as compared to Rs 7,356 million in the corresponding period of last year. Super-tax imposed during 2015 at 4% on 2014''''s taxable income as a one-off tax charge was re-imposed during the period on 2015''''s taxable income.
In view of the related charge of Rs 954 million; average rate of Income Tax for the half year ended June 30, 2016 increased to 41.5%. EPS and RoA of the Bank stood at Rs 7.51 per share and 1.7%, respectively. Excluding the impact of aforementioned prior year tax charge, Profit After Tax, EPS and RoA of the Bank increased to Rs 9,555 million, Rs 8.34 per share and 1.9% respectively. Profit Before Tax of the Bank also increased to Rs 14,705 million for the half year ended June 30, 2016 as compared to Rs 13,579 million in the corresponding period of last year.
The Bank''''s net interest income during the half year ended June 30, 2016 increased to Rs 17,705 million from Rs 17,385 during the corresponding period of last year. Despite reduction in average discount rate by 183 bps during the half year under review, the growth in net markup income was mainly supported by reduction in cost of funding. In view of prudent lending policies of the Bank, net provision charge against non-performing loans for the half year ended June 30, 2016 decreased to Rs 180 million as compared to Rs 542 million in corresponding period of last year.
Non mark-up/Interest income (NII) increased substantially by 23% to Rs 6,970 million from Rs 5,675 million in corresponding period of last year. The increase was driven by gain on sale of securities, which increased to Rs 2,453 million as against Rs 417 million in corresponding period of last year and dividend income from Bank''''s bluechip equity portfolio which increased by 11% to reach Rs 1,966 million during the period under review. In view of active participation in the interbank market, the Bank, in its first year of obtaining "Primary Dealer" status was ranked amongst the Top 3 Primary Dealers during FY 2015-16 by State Bank of Pakistan.
The Bank''''s strategic focus towards expansion in footprint enabled its network to expand to 1,051 branches. Despite branch expansion, growing alternate delivery channels, continuous investment in new technology driven banking platforms and inflationary pressure on operating costs, the administrative expenses growth was curtailed at 8.5% during the period under review.
The Bank''''s deposits increased to Rs 772,345 million as at June 30, 2016 as compared to Rs 734,596 million as at December 31, 2015. In view of limited quality lending avenues, net advances increased by 6% to reach Rs 341,040 million as at June 30, 2016 mainly driven by increase in commodity operations and long term finance. Investments as at June 30, 2016 remained stable at Rs 556,444 million as compared to Rs 544,349 million as at December 31, 2015.
The Bank''''s continued emphasis on minimising Non-performing Loans (NPL), through adoption of technology driven Risk Management practices, resulted in reduction in overall NPLs by Rs 649 million to close at Rs 21,254 million as at June 30, 2016 as compared to December 31, 2015. The Bank has not taken benefit of FSV while determining the provision against NPLs as allowed under BSD Circular No 02 of 2012 dated June 03, 2010.
Infection and coverage ratio of the Bank improved to 5.9% and 90.9% as compared to 6.4% and 87.2% as at December 31, 2015. The high asset quality of the Bank amongst peers is reflected by comparison with the industry average infection and coverage ratios at 11.7% and 83.6% respectively as at March 31, 2016. Total Assets and Equity of the Bank as at June 30, 2016 stood at Rs 1,030,085 million and Rs 98,080 million, registering a growth of 3.8% and 9.8% respectively as compared to December 31, 2015.-PR
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