Allied Bank 9MCY26 profit falls 13% to Rs23bn, declares Rs4 dividend

October 29, 2026 (MLN): Consolidated profit after taxation of Allied Bank Limited (PSX: ABL) fell 12.94% year-on-year to Rs23.34bn for the nine months ended September 30, 2026, compared with Rs26.81bn in the same period last year.

Basic and diluted earnings per share (EPS) declined 12.94% to Rs20.38 from Rs23.41 in the corresponding period last year.

Along with the results, the bank announced an interim cash dividend of Rs4 per share (40%) for the quarter ended September 30, 2026. This is in addition to the interim dividends of Rs8 per share (80%) already paid.

The decline came from a swing in credit loss allowance to a small charge from a Rs4.30bn reversal last year, along with a 13.25% rise in non-markup expenses. Higher net interest income and non-markup income, and a lower tax charge, only partly cushioned the impact.

Mark-up/return/interest earned grew 17.62% to Rs260.92bn from Rs221.83bn, while interest expense rose faster, by 26.38%, to Rs180.90bn from Rs143.15bn. Net mark-up/return/interest income edged up 1.69% to Rs80.01bn from Rs78.68bn.

Other income more than tripled to Rs1.60bn from Rs470.26m, and dividend income rose 37.82% to Rs2.66bn from Rs1.93bn. Foreign exchange income grew 4.59% to Rs4.63bn from Rs4.43bn, and fee and commission income increased 1.51% to Rs13.99bn from Rs13.79bn. Gain on securities fell 29.50% to Rs1.80bn from Rs2.55bn.

As a result, total non-markup income grew 6.55% to Rs24.68bn from Rs23.17bn, lifting total income 2.80% to Rs104.70bn from Rs101.85bn.

Operating expenses increased 13.73% to Rs55.78bn from Rs49.05bn, and other charges grew 29.16% to Rs386.90m from Rs299.55m, while Workers’ Welfare Fund fell 11.96% to Rs991.69m from Rs1.13bn. Total non-markup expenses rose 13.25% to Rs57.16bn from Rs50.47bn.

Share of profit of associates fell 56.77% to Rs235.12m from Rs543.89m. Profit before credit loss allowance declined 7.99% to Rs47.77bn from Rs51.92bn.

The bank booked a net credit loss allowance and write-offs charge of Rs85.09m, against a net reversal of Rs4.30bn last year, which took profit before taxation down 15.18% to Rs47.68bn from Rs56.22bn.

Taxation fell 17.23% to Rs24.35bn from Rs29.41bn, which limited the bottom-line decline and left profit after taxation at Rs23.34bn.

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