Karachi, — Allied Bank Limited (PSX: ABL) has reported its highest-ever quarterly profit after tax, posting earnings of Rs. 12.5 billion for the second quarter of the calendar year 2024 (2QCY24). This represents a 25 percent year-on-year (YoY) increase and a 7 percent quarter-on-quarter (QoQ) rise, according to data released today.
The record earnings for 2QCY24 were highlighted by Arif Habib Limited as the strongest quarterly performance in the bank’s history. For the first half of the calendar year 2024 (1HCY24), Allied Bank’s total earnings reached Rs. 24.1 billion, marking a substantial 37 percent YoY growth. The surge in earnings is attributed to a significant increase in total income and the reversal of provisions.
Alongside the impressive financial results, the bank has announced a cash dividend of Rs. 4 per share for 2QCY24. This brings the total payout for 1HCY24 to Rs. 8 per share.
Key Financial Highlights
- Net Interest Income (NII): Allied Bank’s NII for 2QCY24 amounted to Rs. 29.4 billion, reflecting a 3 percent YoY decline. However, on a QoQ basis, NII recorded a marginal increase of 1 percent. The bank faced rising interest expenses, which grew by 6 percent YoY and 5 percent QoQ, while interest income increased by 3 percent YoY and 4 percent QoQ.
- Non-Funded Income (NFI): The bank’s NFI surged by an impressive 59 percent YoY during 2QCY24, bringing the total NFI for 1HCY24 to Rs. 14.2 billion, up 21 percent YoY. This growth was driven primarily by a significant gain of Rs. 838 million from the sale of securities, compared to Rs. 211 million in the same period last year.
- Fee and Commission Income: ABL’s fee and commission income saw a robust 33 percent YoY increase, reaching Rs. 7.4 billion in 1HCY24.
- Foreign Exchange Income: On the downside, foreign exchange income experienced a 7 percent YoY decline, totaling Rs. 4.1 billion during 1HCY24.
Allied Bank’s strong financial performance in 2QCY24 underscores its resilience in navigating a challenging economic environment. The bank continues to demonstrate its ability to deliver value to shareholders through consistent earnings growth and sustained dividend payouts.
