Karachi: Allied Bank Limited (ABL) has demonstrated remarkable financial growth in 2024, with significant improvements in profitability, asset expansion, and customer-centric innovations. The bank successfully navigated challenging market conditions, reinforcing its industry leadership.
Financial Performance Overview
ABL reported a 5% increase in markup income, reaching Rs 376,760 million in 2024, compared to Rs 357,307 million in 2023. The growth was driven by an increase in average earning assets and strategic investment management. However, markup expenses rose 7% to Rs 261,537 million due to higher deposit costs and interest expenses.
Fee income surged 32% to Rs 14,081 million, fueled by higher card-related fees, remittance commissions, and branch banking service fees. Despite a 15% drop in dividend income to Rs 3,018 million, capital gains soared 308% to Rs 3,444 million, primarily due to increased sales of government securities and Euro bonds.
Foreign exchange income fell 27% to Rs 6,679 million, while non-markup income increased 15% to Rs 27,980 million. The bank’s other income experienced a 228% jump, reaching Rs 758 million.
Profitability and Expenses
Operating expenses rose 20% to Rs 57,985 million, reflecting investments in digital transformation and branch expansion. Despite this, profit before tax grew 3% to Rs 87,928 million, while profit after tax increased 6% to Rs 43,116 million. The effective tax rate for 2024 stood at 50.96%, slightly lower than the 52.56% in 2023.
Deposit and Loan Growth
ABL achieved a major milestone by surpassing Rs 2 trillion in deposits, marking a 20.4% increase from Rs 1,676,623 million in 2023. The bank’s market share in deposits grew to 6.67%, supported by a 9% increase in current accounts.
Gross advances expanded 34% to Rs 1,066,348 million, while net advances surged 35% to Rs 1,051,314 million. ABL maintained a low infection ratio of 1.22%, improving from 1.64% in the previous year, reflecting strong credit portfolio quality.
Asset and Capital Strength
Total assets grew 21% to Rs 2,816,969 million, with net assets rising 20% to Rs 233,901 million. The Capital Adequacy Ratio (CAR) improved to 26.71%, well above the 11.5% regulatory requirement, ensuring financial stability.
Branch Expansion and Digital Transformation
ABL continued expanding its presence with 1,510 branches, including 1,332 conventional, 160 Islamic, and 18 digital branches. The bank also enhanced customer accessibility through its extensive ATM network of 1,604 ATMs, including mobile banking units.
Looking ahead, Allied Bank remains committed to innovation, digital transformation, and sustainable growth, ensuring long-term value creation for stakeholders while reinforcing its position as a leading financial institution in Pakistan.
