Allied Bank Limited (PSX: ABL) has released its financial statement today for the first half of the year ended June 30, 2023. According to the statement, the bank has reported a profit of Rs17.64 billion (EPS: Rs15.40), indicating an impressive growth of 2.58 times Year-over-Year (YoY), as compared to Rs6.83 billion (EPS: Rs5.96) in the same period of the previous year. This is the highest ever profit by Allied Bank, signifying a remarkable growth journey even in challenging Economic times.
ABL has also declared an interim cash dividend for the Quarter ending June 30, 2022, at the rate of Rs2.50 per share, which translates to 25%.
Upon reviewing the income statement, it is evident that the bank’s net interest income (NII) experienced a significant growth of 84.12% to reach Rs50.65 billion compared to the same period in the previous year. This substantial increase in NII is attributed to a rise in interest earnings, which reached Rs168.90 billion, marking a YoY increase of 92.87%.
Furthermore, the bank’s Non-Markup Income (NMI) also demonstrated a growth of 10.88% YoY, reaching Rs12.19 billion. This growth was primarily driven by a notable increase in Fee and Commission income, which reached Rs5.54 billion, compared to Rs4.26 billion in the corresponding period of the previous year. Additionally, dividend income also rose by 24.01% to Rs1.72 billion during the first half of CY23.
However, in terms of expenses, the bank’s total non-interest expenses rose to Rs23.68 billion during the first half of CY23, marking a 28.31% increase compared to the same period in the previous year (Rs18.51 billion). This increase in expenses can be attributed to a rise in operating costs, which increased by 27.89% to reach Rs23.68 billion in the respective period.
Moreover, the bank reported a provision reversal of Rs2.74 billion during the review period, in contrast to a provisioning expense of Rs749.19 million in the corresponding period of the previous year.
On the taxation front, the bank paid Rs17.64 billion in taxes during the first half of CY23, which is 2.58 times higher than the amount paid in the first half of CY22.
|PKR ‘000||1H2023||1H2022||% Growth|
|Net mark-up/interest income||50,647,969||27,508,818||84%|
|Fee and commission income||5,539,403||4,264,204||30%|
|Foreign exchange income||4,359,797||4,295,911||1%|
|Income from derivatives||–|
|Gain on sale of securities – net||540,926||1,012,605||-47%|
|Total non-mark-up/interest income||12,185,237||10,989,083||11%|
|Workers welfare fund||740,470||425,448||74%|
|Total non-mark-up/interest expenses||24,576,089||19,154,193||28%|
|Profit before provisions||38,257,117||19,343,708||98%|
|Provisions/(reversals) and write-offs||2,743,624||-749,192||–|
|Extraordinary / Unusual items||–||–||–|
|Profit before taxation||35,513,493||20,092,900||77%|
|Profit after taxation||17,636,421||6,825,872||158%|
|Earnings per share – Basic and Diluted (in Rupees)||15.4||5.96||–|
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