April 24, 2025: Allied Bank Limited (PSX: ABL) reported a net profit of Rs8.48 billion for the quarter ended March 31, 2025, translating into earnings per share (EPS) of Rs7, down 26.97% from Rs11.61 billion (EPS: Rs10) recorded in the same period last year.
In tandem with the results, the bank’s board of directors announced an interim cash dividend of Rs4 per share, equivalent to 40% of the face value.
The decline in profitability was primarily attributed to a drop in total income, which fell 7.42% YoY to Rs33.25 billion, compared to Rs35.92 billion in Q1 2024. This was largely driven by a 12.85% decrease in net mark-up/interest income, which settled at Rs25.4 billion.
On the other hand, non-mark-up income rose 16% to Rs7.85 billion, boosted by a 36.79% surge in foreign exchange income and a 146% increase in gains on securities. Fee and commission income also grew by nearly 11%, offering some offset to the declining core income.
Meanwhile, operating expenses ballooned 17.38% to Rs15.34 billion, increasing the overall cost burden. However, declines in other expenses and the workers’ welfare fund provided slight relief.
The share of profit from associates plunged 41.65%, while credit loss allowances and write-offs stood at Rs135 million, lower than Rs163 million recorded in the same quarter last year.
As a result, profit before taxation dropped 21.62% YoY to Rs17.71 billion, from Rs22.6 billion. The bank paid Rs9.23 billion in taxes, slightly down from Rs10.99 billion a year ago.
