Allied Bank Limited Reports 1QCY24 Earnings: Profit Up 51% YoY, Down 5% QoQ
Allied Bank Limited (PSX: ABL) unveiled its financial results for the first quarter of the calendar year 2024 (1QCY24) today, showcasing a robust performance with a Profit After Tax (PAT) of Rs. 11.6 billion. This figure represents a noteworthy increase of 51 percent Year-on-Year (YoY). However, the bank experienced a slight dip of 5 percent Quarter-on-Quarter (QoQ).
The dip in earnings for the quarter, as analyzed by Arif Habib Limited (AHL), was primarily attributed to reduced markup and non-markup income. Conversely, on a YoY basis, higher income and provisioning reversals significantly contributed to the increase in overall profitability.
Alongside the earnings announcement, ABL declared a cash dividend of Rs. 4.0 per share.
During 1QCY24, the bank reported a Net Interest Income (NII) of Rs. 29.2 billion, indicating a substantial 43 percent rise from the corresponding period last year. However, this figure represents a 10 percent decline from the preceding quarter.
Interest earned witnessed a commendable surge of 28 percent compared to the previous year, with a modest 1 percent increase from the previous quarter. Conversely, interest expenses saw a 22 percent increase YoY and a 7 percent uptick QoQ.
Non-markup income continued its downward trajectory, experiencing a 4 percent YoY decline and a more significant 16 percent QoQ decrease. This decline was chiefly driven by a substantial drop in FX income, which plummeted by 61 percent YoY and 62 percent QoQ.
Moreover, gains on securities were down by 28 percent QoQ, totaling Rs. 303 million in 1QCY24. However, Fee Income displayed a robust growth trend, surging by 45 percent YoY and 20 percent QoQ, reaching Rs. 4 billion in 1QCY24.
In terms of provisioning, the bank reported a reversal of Rs. 163 million during 1QCY24, marking a significant turnaround from the provisioning charge of Rs. 2.3 billion recorded in the same period last year.
Operating expenses of the bank stood at Rs. 13.6 billion in 1QCY24, up 16 percent YoY and 10 percent QoQ. Consequently, the Cost/income ratio decreased to 39.9 percent for 1QCY24, down from 42.9 percent in the same period last year.
The effective tax rate for the bank was set at 49 percent during 1QCY24, showing an increase from 43 percent in the same period last year.
ABL reported an Earnings Per Share (EPS) of Rs. 4 for Q1 2024 compared to an EPS of Rs. 2.5 in the same period last year.
