KARACHI: Allied Bank in line with its vision to become first-choice bank for the customers is focused to delivering global-quality services. During the quarter ended March 31, 2024 the Bank exhibited outstanding financial performance.
Positive volumetric growth in average earning assets, supported by improving spreads and effective duration management of investments, enabled the Bank to post higher markup income of Rs 94,312 million for the quarter ended March 31, 2024. This represents a 27 percent increase from Rs 74,040 million for the quarter ended March 31, 2023.
Mark-up/Interest expense for the quarter ended March 31, 2024 increased to Rs 65,165 million, up from Rs 53,527 million in the corresponding period last year, representing an increase of 22 percent. This rise is attributable to higher cost of deposits and interest expense on right of use of assets which were partially offset by lower borrowing expense. Consequently, net markup and interest income was recorded at Rs 29,147 million for the quarter under review, compared to Rs 20,513 million for the corresponding period last year, depicting a remarkable growth of 42 percent.
An increase in fee income by 41 percent to Rs 3,549 million as of March 31, 2024, up from Rs 2,518 million as of March 31, 2023, was driven by higher card-related fees, income from remittances, investment banking fees, branch banking customer fees, and commissions on trade.
Capital Gain increased by 70 percent to Rs 303 million for the quarter ended March 31, 2024, up from Rs 178 million as on March 31, 2023, due to higher gain on Federal government securities. Additionally, dividend income for the quarter under review reached Rs 976 million, an increase of 11 percent compared to Rs 879 million for the corresponding quarter last year.
Foreign Exchange Income of Allied Bank reached Rs 1,272 million for the quarter ended March 31, 2024, compared to Rs 3,243 for the corresponding quarter last year, representing a decrease of 61 percent.
Other income stood at Rs 235 million for the quarter ended March 31, 2024, compared to Rs 26 million for the quarter ended March 31, 2023.
Growth in administrative expenses has been restricted to 15 percent, reaching Rs 13,378 million for the first Quarter of 2024, compared to Rs 11,621 million for the first quarter of 2023.
This increase is due to higher salaries & benefits expenses, depreciation, utilities expenses, IT expenses, security service charges and repair and maintenance.
Profit before taxation of Allied Bank was recorded at Rs 22,266 million for the quarter ended March 31, 2024, compared to Rs 13,426 million for the same quarter last year, marking a significant increase of 66 percent.
Profit after taxation for the quarter under review registered at Rs 11,364 million, in comparison with Rs 7,589 million for the quarter ended March 31, 2023, depicting a robust growth of 50 percent.
Earnings per share of the Bank stood at Rs 9.92 during the quarter March 31, 2024, compared to Rs 6.63 during the quarter ended March 31, 2023.
Allied Bank is committed to a hybrid expansion approach that blends “digital” and “brick-and-mortar” banking operations, with an increased focus on digital banking products and services.
The Bank operates a large ATM network consisting of 1,572 machines, including 1,320 on-site, 247 off-site, and 5 Mobile Banking Units (MBU). As of the end of the quarter, the Bank’s branch outreach increased to 1,485 branches, with 1,343 conventional, 128 Islamic banking branches and 14 digital branches.
Total assets of ABL were recorded at Rs 2,337,345 million as on March 31, 2024, showing a growth of 0.3 percent over Rs 2,329,317 at December 31, 2023. Main increase is witnessed in balances with other banks, lending to financial institutions and other assets. Net assets of the Bank increased by 8% to Rs 209,032 million as on March 31, 2024, up from Rs 194,254 million as at December 31, 2023.
Gross advances and net advances reached Rs 718,646 million and Rs 703,444 million respectively, while the non-performing advances portfolio stood at Rs 12,832 million as of March 31, 2024, compared to Rs 794,138 million, Rs 781,597 million and Rs 13,039 million respectively as on December 31, 2023.
Allied Bank continued its efforts towards low infection ratio and high overall coverage ratio which stood at 1.79 percent and 118.5 percent respectively as on March 31, 2024.
Deposits of the Bank stood at Rs 1,698,876 million as on March 31, 2024, compared to Rs 1,676,623 as on December 31, 2023, registering a growth of 1.3 percent.
Total Investments of the Bank stood at Rs 1,165,710 million as on March 31, 2024 in comparison with Rs 1,150,318 million as on December 31, 2023.
Lendings to financial institutions stood at Rs 44,591 million as on March 31, 2024 as compared to Rs 9,418 million as on December 31, 2023 due to increase in Repo Lendings and Call Money Lendings.
Capital Adequacy Ratio of Allied Bank was 27.42% as of March 31, 2024, compared to 26.21 percent as of December 31, 2023.
Copyright Business Recorder, 2024
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