Allied Bank targets over 200 Islamic branches, accelerates digital shift

March 11, 2026 (MLN): Allied Bank Limited (PSX: ABL) plans to expand its Islamic banking footprint to more than 200 branches by end of 2026 , according to the bank’s latest corporate briefing.

Alongside this expansion, the bank is ramping up investment in digital infrastructure and technology.

Management said substantial work is underway on strengthening IT systems, along with upgrades to its core banking system and mobile application.

The bank is also increasing the use of artificial intelligence and expanding server capacity to support its digital transformation.

The bank is further prioritising  small and medium enterprise (SME) and small loan segment, a key growth area going forward.

In terms of deposits, Allied Bank aims to achieve growth exceeding 15% in 2026 and is seeking to increase its share in home remittances.

Meanwhile, the bank plans to accelerate the shift toward digital transactions by expanding its debit card base from 3.9m to around 5m cards.

For the year ended December 31, 2025, Allied Bank reported a profit after tax (PAT) of Rs36.33bn, reflecting an 18.2% decline compared with Rs44.39bn in 2024.

Earnings per share (EPS) fell to Rs31.73 from Rs38.77 a year earlier.

The board approved a final cash dividend of Rs4 per share (40%), in addition to interim dividends of Rs12 per share (120%) already paid during the year, taking the total payout for 2025 to Rs16 per share (160%).

The bank’s mark-up/return/interest earned declined 21.1% year-on-year to Rs297.32bn from Rs376.91bn, mainly due to lower policy rates and reduced asset yields.

However, mark-up/return/interest expensed dropped 26.5% to Rs192.22bn from Rs261.54bn, reflecting lower funding costs.

Consequently, net mark-up/interest income stood at Rs105.10bn, down 8.9% from Rs115.36bn last year.

Non-mark-up income increased 2.4% year-on-year to Rs31.07bn.

On the cost side, non-mark-up expenses rose 15.4% to Rs68.70bn from Rs59.52bn. Operating expenses increased 15.7% to Rs66.82bn, reflecting expansion and inflationary pressures.

Despite the earnings decline, the bank maintained a strong balance sheet, with its equity base rising 13% year-on-year to Rs263bn. The capital adequacy ratio remained robust at 28%.

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