Allied Bank declares Rs4 dividend

August 19, 2026 (MLN): Allied Bank Limited (PSX: ABL) reported an 11% decline in its consolidated net profit for the half-year ended June 30, 2026 (1HCY26), recording Rs15.97bn compared to Rs17.98bn in the corresponding period last year.

Alongside the financial results, the bank announced an interim cash dividend of Rs4 per share.

Reflecting this bottom-line compression, the bank's basic and diluted earnings per share (EPS) fell to Rs13.95 for the half-year, down from Rs15.71 in 1HCY25.

The bank's overall revenue performance remained resilient, supported by steady expansion in core net mark-up income and non-markup revenue streams.

Mark-up/interest earned grew 19% to Rs171.58bn, while mark-up expensed rose 29% to Rs118.41bn, keeping net mark-up income up by 3% at Rs53.16bn.

Additionally, total non-mark-up income rose 9% to Rs16.78bn driven by a 2.63x surge in other income (Rs1.36bn), a 47% increase in dividend income (Rs2.02bn), and a 16% rise in foreign exchange income (Rs3.43bn) which helped offset a 71% drop in securities gains (Rs490.08m).

 Consequently, total income expanded by 4% to reach Rs69.94bn.

On the expense side, operating expenses rose 12% to Rs35.83bn to accommodate expanding banking operations, bringing total non-mark-up expenses to Rs36.74bn.

 Driven by overhead growth and a 22% drop in the share of profit from associates (Rs194.42m), profit before credit loss allowance fell 3% to Rs33.40bn.

Below the pre-provision line, financial results were impacted by credit loss provisions.

 ABL recorded a net credit loss allowance charge of Rs924.33m during 1HCY26, marking a complete turnaround from the massive Rs3.31bn net provision reversal booked in 1HCY25.

This shift in credit provisioning dragged profit before taxation down by 14% to Rs32.47bn.

The reduction in pre-tax earnings was partially buffered by a 17% lighter taxation expense of Rs16.50bn (down from Rs19.82bn in 1HCY25).

Supported by reduced tax outlays, Allied Bank Limited securely closed the six-month period with its net profit standing at Rs15.97bn.

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