KARACHI: Allied Bank Limited’s steadfast commitment to providing world class, digitally integrated solutions for customers, along with its passion for innovative thinking, mission to create sustainable value for all stakeholders and enthusiasm to support the community and society continues with even greater zeal.
Allied Bank showed strong performance during the nine months ended September 30, 2024. During the period under review asset base and equity of the bank improved by 13% and 18% respectively as compared to December 2023, whereas profit after tax (PAT) registered a growth of 25% for the nine months ended September 30, 2024 as compared to corresponding period of nine months ended September 30, 2023. The Bank declared Rs. 4.00 dividend for the third quarter 2024.
The Bank posted markup income of Rs. 291,215 million for the nine months ended September 30, 2024, higher by 10% compared to Rs. 264,341 million for the same period in 2023. This increase was result of positive volumetric growth in average earning assets, supported by improving spreads and effective duration management of investments.
Markup/interest expense of Allied Bank during the nine months ended September 30, 2024 increased to Rs. 201,058 million, up from Rs. 183,356 million for the same period in 2023, representing an increase of 10%. This rise is attributed to higher cost of deposits and increased interest on Right of use Assets, partially offset by lower borrowing expense.
Consequently, the net markup and interest income of ABL reached Rs. 90,157 million for the nine months ended September 30, 2024, compared to Rs. 80,985 million for the same period last year, showing an increase of 11%.
Fee income of The Bank registered at Rs. 10,095 million as of September 30, 2024, compared to Rs. 7,714 million as of September 30, 2023, improving by 13%. This is mainly attributable to higher card-related fee, commission on remittances, branch banking customer fee and commission on trade.
Robust growth has been observed in capital gains, which surged to reach at Rs. 1,353 million during the nine months ended September 30, 2024, compared to Rs. 10 million in the previous year. This increase is mainly due to higher gains on Federal government securities and Eurobonds. Dividend income for the same period stood at Rs. 2,278 million, reflecting a decrease of 12% compared to Rs. 2,574 million as of September
30, 2023.
Foreign exchange income of Allied Bank recorded at Rs. 5,447 million for the nine months ended September 30, 2024, compared to Rs. 5,781 million for the corresponding period in 2023, making a decrease of 6%. Other income stood at Rs. 672 million as of September 30, 2024, up from Rs. 93 million as of September 30, 2023.
As a result, non-markup income grew significantly by 23% reaching Rs. 19,845 million for the nine months ended September 30, 2024, compared to Rs. 16,171 million for the same period
in 2023.
Allied Bank’s prudent expenditure control approach has effectively curtailed overall administrative expenses at Rs. 42,852 million as of September 30,
2024, compared to Rs. 36,799 million as of September 30, 2023, reflecting an increase of 16%. This rise is attributed to higher salaries and benefits, IT expenses, card related costs, repair and maintenance expenses, security service charges and utilities.
The Bank posted a significant increase of 25% in PAT, closing at Rs. 35,691 million for the nine months ended September 30, 2024, compared to Rs. 28,662 million for the same period in 2023. In line with the increase in PAT, earnings per share (EPS) of Allied Bank also rose by 25%, reaching Rs. 31.17 as of September 30, 2024, compared to Rs. 25.03 as of September 30, 2023.
Allied Bank has expanded its outreach, achieving a milestone of over 1,500 branches, with a total of 1,506 branches, including 1,351 Conventional branches, 141 Islamic branches and 14 Digital branches. The Bank operates with large ATM network of 1,577 machines consisting of 1,330 onsite machines, 241 off-site machines and 6 mobile banking units.
Total assets of The Bank stood at Rs. 2,623,822 million as of September 30, 2024, depicting a growth of 13% compared to Rs. 2,329,014 million as of December 30, 2023. This increase was driven by Lendings to Financial Institutions, Investments and Other assets. Net assets of The Bank increased by 19% reaching Rs. 230,088 million as of September 30, 2024, compared to Rs. 194,254 million as of December 31, 2023. Investments of Allied Bank stood at Rs. 1,333,149 million as of September 30, 2024, reflecting robust growth of 16% compared to Rs. 1,150,318 million as of December 31, 2023. The increase in investments mainly pertains to increase in Treasury bills and Pakistan Investment Bonds.
Gross advances of Allied Bank stood at Rs. 861,507 million as of September 30, 2024, compared to Rs. 794,138 million as of December 31, 2023.
The Bank’s prudent Risk Management System resulted in a 1% reduction in the Non-performing Loans (NPLs), with the NPLs portfolio standing at Rs. 12,927 million as of September 30, 2024, compared to Rs. 13,039 million as of December 31, 2023.
The Bank has continued its efforts to maintain a low infection ratio and a high overall coverage ratio, which stood at 1.50% and 107%, respectively, as of September 30, 2024.
Deposits of Allied Bank reached at Rs. 1,926,440 million as of September
30, 2024, compared to Rs. 1,676,623 million as of December 31, 2023, registering a deposit growth of 15%.
Return on Assets (ROA) of The Bank registered at 1.93% as of September 30, 2024, compared to 1.79% as of December 31, 2023. Return on Equity (ROE) stood at 29.0% as of September 30, 2024. Capital Adequacy Ratio of Allied Bank was 32.43% as of September 30, 2024, compared to 26.21% as of December 31, 2023 depicting a strong capital positioning.
Copyright Business Recorder, 2024
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