ABL Posts Rs. 35.69 Billion Profit (After Tax) in First 9 Months-2024

ABL Posts Rs. 35.69 Billion Profit

KARACHIAllied Bank Limited (ABL) has reinforced its position as a leader in digitally integrated banking solutions in Pakistan, demonstrating robust financial growth and ongoing commitment to innovation and community support. The bank announced notable achievements for the nine-month period ending September 30, 2024, with substantial improvements in assets, equity, and profit.

ABL’s assets grew by 13%, while its equity increased by 18% compared to December 2023. Profit after tax (PAT) rose significantly by 25%, reaching Rs. 35,691 million, a strong improvement over Rs. 28,662 million in the same period last year. This growth in PAT is reflected in earnings per share (EPS), which climbed to Rs. 31.17 from Rs. 25.03 a year earlier. A quarterly dividend of Rs. 4.00 was declared for the third quarter of 2024.

Strong Income and Revenue Performance

During the review period, Allied Bank posted a markup income of Rs. 291,215 million, marking a 10% increase from Rs. 264,341 million in 2023. This rise was driven by volumetric growth in average earning assets and improved investment strategies. The bank’s markup and interest expenses also rose by 10% to Rs. 201,058 million, influenced by higher deposit costs and increased interest on assets.

The bank reported a net markup and interest income of Rs. 90,157 million, up 11% from the prior year’s figure of Rs. 80,985 million. Non-markup income also surged, reaching Rs. 19,845 million, a 23% increase compared to Rs. 16,171 million in 2023, fueled by capital gains on government securities, improved fee and commission income, and a notable rise in card-related fees and trade commissions.

Capital gains were particularly impressive, rising to Rs. 1,353 million from just Rs. 10 million last year, while foreign exchange income saw a slight decline, reaching Rs. 5,447 million from Rs. 5,781 million the previous year. Other income also increased to Rs. 672 million, up from Rs. 93 million in 2023.

Strategic Investment and Lending Growth

Allied Bank’s investment portfolio expanded by 16% to Rs. 1,333,149 million, primarily through Treasury bills and Pakistan Investment Bonds. Gross advances also saw growth, reaching Rs. 861,507 million, up from Rs. 794,138 million in December 2023. The bank’s prudential risk management efforts have reduced non-performing loans (NPLs) by 1%, with the NPL portfolio standing at Rs. 12,927 million.

Deposits experienced a robust 15% growth, reaching Rs. 1,926,440 million, underlining ABL’s strong appeal among depositors and reflecting the bank’s effective deposit mobilization strategy.

Operational Efficiency and Financial Ratios

Allied Bank’s operational efficiency was underscored by its approach to controlling expenses, which totaled Rs. 42,852 million, up 16% from the previous year. This increase is attributed to higher employee benefits, IT upgrades, and increased security and maintenance costs.

Key financial indicators also improved, with a Return on Assets (ROA) of 1.93%, up from 1.79% in December 2023, and a Return on Equity (ROE) of 29.0%. The bank’s Capital Adequacy Ratio stood at a strong 32.43%, compared to 26.21% in December 2023.

Expanding Branch Network and Digital Presence

Reaffirming its commitment to accessibility, Allied Bank expanded its network to 1,506 branches, comprising 1,351 conventional, 141 Islamic, and 14 digital branches. Its ATM network also grew, reaching 1,577 units, including 1,330 onsite ATMs, 241 offsite, and six mobile banking units.

Conclusion

Allied Bank’s performance for the nine months ended September 30, 2024, reflects its resilient growth and operational strength, backed by strategic investments in digital infrastructure and customer service enhancements. As the bank looks to the future, its dedication to creating sustainable value for stakeholders remains unwavering, cementing its role as a leader in Pakistan’s banking sector.

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