ABL CY25 profit slides 18%

February 17, 2026 (MLN): Allied Bank Limited (PSX: ABL) posted a profit after tax (PAT) of Rs36.33 billion for the year ended December 31, 2025, showing an 18.2% decline compared to Rs44.39bn in CY24.

Earnings per share (EPS) dropped to Rs31.73 from Rs38.77 last year.

The board approved a final cash dividend of Rs4 per share (40%), in addition to interim dividends of Rs12 per share (120%) already paid, taking the total payout for CY25 to 160%.

ABL’s mark-up/return/interest earned decreased 21.1% YoY to Rs297.32bn from Rs376.91bn, impacted by lower policy rates and reduced asset yields.

Meanwhile, mark-up/return/interest expensed declined 26.5% YoY to Rs192.22bn from Rs261.54bn, showing lower funding costs.

Consequently, net mark-up/interest income (gross profit) stood at Rs105.10bn, down 8.9% YoY from Rs115.36bn, indicating some compression in spreads.

Non-mark-up/interest income rose 2.4% YoY to Rs31.07bn from Rs30.33bn. Within this, fee and commission income increased 17.8% to Rs19.05bn, dividend income fell slightly 3.8% to Rs2.90bn, while foreign exchange income declined 22.4% to Rs5.19bn.

Gain on securities was down 15.2% to Rs2.92bn, and other income remained largely flat at Rs1.00bn. The share of profit from associates decreased 18.7% to Rs671.3m.

This brought total income (net sales equivalent) to Rs136.18bn, down 6.5% YoY from Rs145.70bn.

On the expense side, total non-mark-up/interest expenses rose 15.4% YoY to Rs68.70bn from Rs59.52bn.

Operating expenses increased 15.7% to Rs66.82bn, while the Workers’ Welfare Fund (WWF) rose 5.0% to Rs1.52bn, and other charges climbed 10.9% to Rs354m, showing business expansion and inflationary pressures.

Profit before credit loss allowance dropped 21.7% YoY to Rs68.15bn from Rs87.00bn.

The bank recorded credit loss provisions of Rs7.64bn, significantly higher than Rs2.71bn in CY24, indicated elevated provisioning requirements.

As a result, profit before taxation fell 15.5% YoY to Rs75.79bn from Rs89.71bn. Taxation decreased 12.9% to Rs39.46bn from Rs45.32bn, resulting in the reported PAT of Rs36.33bn.

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