ABL: CY20 Result Review
ABL announced its CY2020 result today, where the bank reported an earnings of PkR18.3 billion (EPS: PKR15.75/share) vs. PKR14.11 billion (EPS: PKR12.32) in the same period last year, in line with analysts expectation. Moreover, the bank announced a dividend of PkR6/share, taking cumulative payout for the year to PkR20/share.
Net interest income increased by 15.6% to PKR 48.42 billion primarily due to low cost deposits which the bank increased during the year.
Bank was successful in cutting its costs and over heads during the year, as despite inflation its operating expenses increased by just 4.6% to PKR 29.8 billion in 2020.
Non-interest income increased by 15%YoY on account of higher capital gains and fee income.
ยท Provisioning expense turned on the higher side (PKR843 millionin 2020 vs. PKR 546 million in the previous year) potentially to increase loss reserves.
| PKR in Million | CY20 | CY19 | YoY |
| Markup Earned | 110,546 | 122,637 | -9.86% |
| Markup Expensed | 62,126 | 80,757 | -23.07% |
| Net Interest Income | 48,420 | 41,879 | 15.62% |
| Non-Interest Income | 12,542 | 10,891 | 15.16% |
| Non-Mark-up Expenses | 30,604 | 27,982 | 9.37% |
| Pre-Provision Profit | 30,358 | 24,788 | 22.47% |
| Provisions | 843 | 546 | 54% |
| Profit Before Tax | 29,515 | 24,241 | 21.76% |
| Taxation | 11,485 | 10,128 | 13.40% |
| Profit After Tax | 18,029 | 14,112 | 27.76% |
| Earnings per share | 15.75 | 12.32 | – |
| Dividend per share | 8 | 7 | – |
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