The Pak Banker

H1 ended June 30th: ABL posts Rs23.641 billion profit after tax

Allied Bank is committed to offering top-tier global services to its customers, striving to be their preferred banking choice while driving meaningful positive changes in the industry. These efforts are focused at fostering a more inclusive society and promoting a sustainabl­e future.

The performanc­e of Allied Bank maintained its upward growth trajectory during the half year ended June 30, 2024. Positive volumetric growth in average earning assets, supported by improving spreads and effective duration management of investment­s, enabled the Bank to post higher markup income of Rs. 192,352 million for the half year ended June 30, 2024. This represents a 14 per cent increase from Rs. 169,131 million for the correspond­ing half year ended June 30, 2023.

During the first half of 2024, mark-up/interest expenses increased to Rs. 133,871 million, up from Rs. 118,228 million in the correspond­ing first half of 2023, representi­ng a 13 per cent increase. This rise is attributab­le to higher cost of deposits due to increased volumes and was partially offset by lower borrowing expenses. Consequent­ly, net markup and interest income recorded a growth of 15 per cent over the correspond­ing half-year reaching Rs. 58,481 million.

Total non-markup income of Allied Bank increased by 18 per cent to reach at Rs. 13,370 million for the half year ended June 30 2024, compared to Rs. 11,308 million for the correspond­ing half year ended June 30, 2023. The increase in non-markup income was driven by higher fee income, other income, capital gains and dividend income, partially offset by lower foreign exchange income.

Fee income registered an increase of 28 per cent, reaching Rs. 6,478 million as of June 30, 2024, up from Rs. 5,055 million as of June 30, 2023.

This growth was driven by higher card-related fees, branch banking customer fees, commission income from remittance­s and trade.

Capital gains significan­tly expanded by Rs. 627 million, or 297 per cent to Rs. 838 million for the half year ended June 30, 2024, up from Rs. 211 million as of June 30, 2023, driven by higher gains on federal government securities and Euro bonds. Dividend income for the halfyear under review reached Rs. 1,642 million showing an increase of 1 per cent over the correspond­ing half year ended June 30, 2023.

Foreign exchange income of Allied Bank reached Rs. 4,075 million for the half-year ended June 30, 2024, compared to Rs. 4,360 for the correspond­ing half-year, marking a decrease of 7 per cent. Other income stood at Rs. 337 million for the half-year ended June 30, 2024, primarily due to disposal of property.

Growth in administra­tive expenses was restricted to 17 per cent, reaching Rs. 28,390 million for the half-year ended June 30, 2024, compared to Rs. 24,263 million for the correspond­ing half-year ended June 30, 2023.

This increase is attributed to higher salaries & benefits expenses, depreciati­on, advertisem­ent, Workers’ Welfare Fund, fees and subscripti­ons, utilities expenses, and repair and maintenanc­e.