Allied Bank Posts 51% Profit Growth in First 3 Months of 2024


Allied Bank Limited (PSX: ABL) announced earnings (PAT) today for 1QCY24 at Rs. 11.6 billion, depicting an increase of 51 percent YoY, however down 5 percent QoQ.

According to Arif Habib Limited (AHL), the decrease in earnings QoQ was mainly attributed to reduced markup and non-markup income. However, on a YoY basis, higher income and provisioning reversals contributed to an increase in overall profitability.

Along with the result, ABL announced a cash dividend of Rs. 4.0 per share.

In the 1QCY24, the bank reported a Net Interest Income of Rs. 29.2 billion, marking a significant 43 percent rise from the same period in the previous year. However, this figure represents a 10 percent decline from the preceding quarter.

Interest earned surged by 28 percent compared to the previous year and saw a modest 1 percent increase from the previous quarter. On the other hand, interest expenses witnessed a 22 percent increase compared to the same period last year and a 7 percent uptick compared to the prior quarter.

I
n the outgoing quarter, non-markup income continued its downward trend, experiencing a 4 percent YoY decline and a more significant 16 percent QoQ decrease. This decline was primarily driven by a substantial drop in FX income, which plummeted by 61 percent YoY and 62 percent QoQ.

Additionally, gains on securities were down by 28 percent QoQ, totaling Rs. 303 million in 1QCY24. However, there was a contrasting positive trend in Fee Income, which showed robust growth. Fee Income surged by 45 percent YoY and 20 percent QoQ, reaching Rs. 4 billion in 1QCY24.

In the 1QCY24, the bank reported a reversal in provisioning of Rs. 163 million, marking a significant turnaround from the provisioning charge of Rs. 2.3 billion recorded in the same period last year.

The operating expense of the bank clocked in at Rs. 13.6 billion in 1QCY24, up 16 percent YoY and 10 percent QoQ. With this, the Cost/income ratio stood at 39.9 percent for 1QCY24, down from 42.9 percent in the same period last year.

The effective tax rate fo
r the bank was set at 49 percent during 1QCY24, showing an increase from 43 percent in the same period last year.

ABL posted earnings per share (EPS) of Rs. 4 for Q1 2024 compared to an EPS of Rs. 2.5 in the same period last year.

Source: Pro Pakistani