LAHORE: Allied Bank is committed to offering top-tier global services to its customers, striving to be their preferred banking choice while driving meaningful positive changes in the industry.
These efforts are focused at fostering a more inclusive society and promoting a sustainable future.
The performance of Allied Bank maintained its upward growth trajectory during the half year ended June 30, 2024. 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. 192,352 million for the half year ended June 30, 2024. This represents a 14% increase from Rs. 169,131 million for the corresponding half year ended June 30, 2023.
During the first half of 2024, mark-up/interest expenses increased to Rs. 133,871 million, up from Rs. 118,228 million in the corresponding first half of 2023, representing a 13% increase. This rise is attributable to higher cost of deposits due to increased volumes and was partially offset by lower borrowing expenses. Consequently, net markup and interest income recorded a growth of 15% over the corresponding half-year reaching Rs. 58,481 million.
Total non-markup income of Allied Bank increased by 18% to reach at Rs. 13,370 million for the half year ended June 30 2024, compared to Rs. 11,308 million for the corresponding half year ended June 30, 2023. The increase in non-markup income was driven by higher fee income, other income, capital gains and dividend income, partially offset by lower foreign exchange income.
Fee income registered an increase of 28%, reaching Rs. 6,478 million as of June 30, 2024, up from Rs. 5,055 million as of June 30, 2023. This growth was driven by higher card-related fees, branch banking customer fees, commission income from remittances and trade.
Capital gains significantly expanded by Rs. 627 million, or 297% to Rs. 838 million for the half year ended June 30, 2024, up from Rs. 211 million as of June 30, 2023, driven by higher gains on federal government securities and Euro bonds. Dividend income for the half-year under review reached Rs. 1,642 million showing an increase of 1% over the corresponding half year ended June 30, 2023.
Foreign exchange income of Allied Bank reached Rs. 4,075 million for the half-year ended June 30, 2024, compared to Rs. 4,360 for the corresponding half-year, marking a decrease of 7%.
Other income stood at Rs. 337 million for the half-year ended June 30, 2024, primarily due to disposal of property.
Growth in administrative expenses was restricted to 17%, reaching Rs. 28,390 million for the half-year ended June 30, 2024, compared to Rs. 24,263 million for the corresponding half-year ended June 30, 2023. This increase is attributed to higher salaries & benefits expenses, depreciation, advertisement, Workers’ Welfare Fund, fees and subscriptions, utilities expenses, and repair and maintenance.
Profit before taxation of ABL was recorded at Rs. 46,510 million for the half-year ended June 30, 2024, compared to Rs. 35,204 million for the half-year ended June 30, 2023, marking an appreciable increase of 32%. Profit after taxation for the half-year ended June 30, 2024 was registered at Rs. 23,641 million, in comparison with Rs. 17,443 million for the half year ended June 30, 2023, depicting a significant growth of 36%.
Earnings per share of Allied Bank stood at Rs. 20.65 during the half-year June 30, 2024, compared to Rs. 15.23 during the half-year ended June 30, 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 1,325 on-site, 242 off-site, and 5 Mobile Banking Units (MBU). As of the end of the second quarter, the Bank’s branch outreach expanded to 1,493 branches, comprising 1,360 conventional, 133 Islamic banking branches and 14 digital branches.
Total assets of Allied Bank stood at Rs. 2,517,872 million as of June 30, 2024, reflecting a growth of 8% from Rs. 2,329,317 as of December 31, 2023. The main increase was observed in lending to financial institutions, balances with other banks, investments and other assets. Net assets of Allied Bank increased by 12% to Rs. 218,528 million as of June 30, 2024, up from Rs. 194,254 million as of December 31, 2023.
Gross advances and net advances reached Rs. 786,681 million and Rs. 772,967 million respectively, while the non-performing advances portfolio stood at Rs. 12,427 million as of June 30, 2024. This compares to Rs. 794,138 million, Rs. 781,597 million and Rs. 13,039 million, respectively, as of December 31, 2023.
Allied Bank continued its efforts to maintain a low infection ratio and a high overall coverage ratio which stood at 1.58% and 110.35%, respectively, as of June 30, 2024. No FSV benefit was availed while determining provisions against non-performing loans, as allowed under guidelines of SBP.
Deposits of the Bank stood at Rs. 1,877,473 million as of June 30, 2024, compared to Rs.1,676,623 as of December 31, 2023, registering robust growth of 12%. A healthy growth of 12% was also witnessed in total investments of ABL which stood at Rs. 1,283,420 million as of June 30, 2024, compared to Rs. 1,150,318 million as of December 31, 2023. This mainly pertains to increase in Pakistan Investment Bonds and higher revaluation gains partially offset by lower treasury bills.
Lendings to financial institutions stood at Rs. 28,094 million as of June 30, 2024, compared to Rs. 9,418 million as of December 31, 2023 due to higher Repo and Musharakah lendings, partially offset lower Call Money lendings. Return on Assets of ABL improved to 2.0% as of June 30, 2024, compared to 1.79% as of December 31, 2023. Return on Equity stood at 29.6% as of June 30, 2024, compared to 29.4% as of December 31, 2023. Capital Adequacy Ratio of Allied Bank was 30.10% as of June 30, 2024, compared to 26.21% as of December 31, 2023.
Copyright Business Recorder, 2024
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