Allied Bank half-year profit drops 25%

August 21, 2025 (MLN): Allied Bank Limited (PSX: ABL) posted a profit after tax of Rs17.98bn (EPS: Rs15.71) for the half year ended June 30, 2025, down 25.3% from Rs24.08bn (EPS: Rs21.03) in the same period last year.

The bank has given dividend for the period at Rs4 per share.

The bank’s mark-up/return/interest earned fell by 25.3% to Rs143.65bn, while mark-up/return/interest expensed declined by 31.3% to Rs91.92bn. As a result, net mark-up/interest income contracted by 11.6% to Rs51.73bn.

Non-mark-up/interest income, however, grew by 8.7% to Rs15.46bn, supported by a 23.4% rise in fee and commission income to Rs9.07bn and a 101.2% increase in gain on securities to Rs1.69bn. On the other hand, dividend income dropped 16.3% to Rs1.37bn, while foreign exchange income declined by 27.5% to Rs2.96bn.

Total income decreased by 7.6% to Rs67.19bn.

On the expense side, operating expenses rose by 15.3% to Rs31.99bn, while other charges declined by 10.3% to Rs208m. Workers’ welfare fund contributions also fell by 19.8% to Rs757m.

Overall, total non-mark-up/interest expenses increased by 13.9% to Rs32.95bn.

Profit before credit loss allowance was Rs34.49bn, a decline of 21.9%. After accounting for credit loss allowance and write-offs of Rs3.31bn, profit before taxation dropped by 19.9% to Rs37.80bn.

Taxation stood at Rs19.82bn, compared to Rs23.18bn in the same period last year, a decline of 14.5%.

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