August 21, 2024 (MLN): Allied Bank Limited (PSX: ABL) experienced a rise of over 25% YoY in its profitability in Q2 CY24, clocking in its profit after tax at Rs12.47 billion [EPS: Rs10.89], compared to a profit of Rs9.95bn [EPS: Rs8.69] in the same period last year.
Along with the results, the Board of Directors (BoD) of ABL recommended an interim cash dividend of Rs4 per share.
The income statement displays that the bank's net interest income (NII) dropped 2.77% to Rs29.37bn, compared to Rs30.21bn in the previous year.
The drop in NII is due to a larger increase in interest expenses compared to interest income.
On the other hand, the bank’s profit this quarter was mainly supported by higher non-markup income which clocked in at Rs36.82bn in Q2 CY24.
The increase is primarily attributed to a significant improvement in fee and commission income, foreign exchange income, and higher net gains on the sale of securities.
On the expense side, the total non-markup expenses increased by 19.26% YoY to Rs15.28bn in Q2 CY24 compared to Rs12.81bn in Q2 CY23.
The increase was attributed to a 19.59% YoY jump in operating expenses, rising from Rs12.28bn in Q2 CY23 to Rs14.69bn in the review quarter.
Additionally, the bank’s expenses related to the Workers' Welfare Fund and other charges also went up during the review period.
Moving forward, the profit and loss statement shows that a massive provision expense of Rs2.89bn was incurred during Q2 CY24, against a provision reversal of Rs433.85m in Q2 CY23.
On the tax front, the bank paid Rs12.15bn, just 1.39% YoY higher than the amount paid in the previous year.
| Consolidated Profit and Loss Account for the quarter ended on June 30, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Jun-24 | Jun-23 | % Change | |
| Mark-up/return/interest earned | 98,087,890 | 94,931,165 | 3.33% |
| Mark-up/return/interest expensed | 68,715,211 | 64,720,810 | 6.17% |
| Net mark-up/interest income | 29,372,679 | 30,210,355 | -2.77% |
| NON MARK-UP/INTEREST INCOME | |||
| Fee and commision income | 3,359,680 | 2,783,859 | 20.68% |
| Dividend income | 666,094 | 754,402 | -11.71% |
| Foreign exchange income | 2,803,819 | 1,117,197 | 150.97% |
| Income from derivatives | – | – | – |
| Gain on sale of securities – net | 535,457 | 33,274 | 1509.24% |
| Other income | 86,621 | 10,931 | 692.43% |
| Total non mark-up/interest income | 7,451,671 | 4,699,663 | 58.56% |
| Total Income | 36,824,350 | 34,910,018 | 5.48% |
| NON MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | 14,686,083 | 12,280,581 | 19.59% |
| Workers welfare fund | 471,050 | 450,205 | 4.63% |
| Other charges | 121,896 | 80,661 | 51.12% |
| Total non mark-up/interest expenses | 15,279,029 | 12,811,447 | 19.26% |
| Share of profit of associates | 188,961 | 270,420 | |
| Profit before provisions | 21,734,282 | 22,368,991 | -2.84% |
| Credit loss allowance and write offs – net | (2,885,474) | 433,847 | – |
| Extra ordinary / Unusual items | – | – | – |
| Profit before taxation | 24,619,756 | 21,935,144 | 12.24% |
| Taxation | 12,149,759 | 11,982,950 | 1.39% |
| Profit after taxation | 12,469,997 | 9,952,194 | 25.30% |
| Earnings per share – Basic and Diluted (in Rupees) | 10.89 | 8.69 | – |
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Posted on: 2024-08-21T11:51:25+05:00
