ABL’s Profit Doubles to Rs11.7bn in 4QCY23

Staff Report

Allied Bank Limited (ABL) has reported robust 4QCY23 Results and ABL’s Profit After Tax doubled to Rs11.7 billion.

Allied Bank Limited (ABL) announced its 4QCY23 results on Tuesday, revealing that the bank’s unconsolidated profit-after-tax reached Rs11.7 billion (EPS Rs10.18), marking a significant 100%YoY increase, supported by an 82%YoY rise in net interest income, driven by high yields on earning assets.

Furthermore, the bank declared a dividend of Rs4 per share in 4QCY23, bringing the cumulative payout for CY23 to Rs12 per share. Pakistan Banks’ Earnings Surged by 95% in 3Q2023

ABL’s interest earnings saw a notable 55%YoY growth, surpassing the 44%YoY expansion in interest expenses, thereby fueling the 82%YoY growth in net interest income from Rs17.9bn in 4QCY22 to Rs32.6bn in 4QCY23. Faysal Bank Records net profit of Rs 7.5B for the First Half of 2023

The bank also experienced a 31% YoY increase in fee and commission income, attributed to improved trade activity, while dividend income rose by 15% YoY. Additionally, ABL’s FX income grew by 15% YoY, thanks to exchange rate stability.

ABL recorded net provisioning of Rs445mn, significantly higher than the previous quarter’s Rs53mn. This increase suggests that the bank has allocated more provisions rather than reversals on advances, unlike in previous quarters.

Cumulatively, ABL’s net earnings for CY23 amounted to Rs41bn (EPS Rs35.5), marking a robust 92%YoY increase, primarily due to the widening of net interest margins amid elevated interest rates.