April 24, 2024 (MLN): Allied Bank Limited (PSX: ABL) experienced a rise of over 51% YoY in its profitability in 3QFY24, clocking in its profit after tax at Rs11.61 billion [EPS: Rs10.14], compared to a profit of Rs7.68bn [EPS: Rs6.71] in 3QFY23.
Along with the results, the Board of Directors (BoD) of ABL recommended an interim cash dividend of Rs4 per share.
Going by the income statement, the bank witnessed an increase of 42.63% YoY in its net interest income (NII) to stand at Rs29.15bn, compared to Rs20.44bn in the previous year.
The surge in NII is due to a jump in interest-earning (Rs94.33bn), up by 27.52% YoY.
On the other hand, the bank’s total non-markup income recorded a drop of 4.31% YoY to Rs6.77bn.
The decline is attributed to a major drop in foreign exchange income that clocked in at Rs1.27bn in 3QFY24, down 60.78% YoY compared to 3QFY23.
ABL’s dividend income andfee and commission income went up by 11.05% and 44.89% YoY, respectively.
On the expense side, the total non-markup expenses increased by 16.01% YoY to Rs13.65bn in 3QFY24 compared to Rs7.07bn in 3QFY23.
The increase was attributed to a 14.64% YoY jump in operating expenses, rising from Rs11.4bn in 3QFY23to Rs13.07bn 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 provision expense of Rs162.76m was incurred during 3QFY24, against a provision reversal of Rs2.31bn in 3QFY23.
On the tax front, the bank paid Rs10.99bn, 86.44% YoY higher than the amount paid in the previous year.
| Consolidated Profit and Loss Account for the quarter ended on March 31 2024 (Rupees in '000) | |||
|---|---|---|---|
| Mar-24 | Mar-23 | % Change | |
| Mark-up/return/interest earned | 94,326,891 | 73,971,224 | 27.52% |
| Mark-up/return/interest expensed | 65,176,657 | 53,533,610 | 21.75% |
| Net mark-up/interest income | 29,150,234 | 20,437,614 | 42.63% |
| NON MARK-UP/INTEREST INCOME | |||
| Fee and commision income | 3,992,545 | 2,755,544 | 44.89% |
| Dividend income | 976,341 | 879,230 | 11.05% |
| Foreign exchange income | 1,271,878 | 3,242,600 | -60.78% |
| Income from derivatives | – | – | – |
| Gain on sale of securities – net | 302,802 | 177,832 | 70.27% |
| Other income | 224,728 | 17,804 | 1162.23% |
| Total non mark-up/interest income | 6,768,294 | 7,073,010 | -4.31% |
| Total Income | 35,918,528 | 27,510,624 | 30.56% |
| NON MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | 13,065,304 | 11,396,366 | 14.64% |
| Workers welfare fund | 473,200 | 290,265 | 63.02% |
| Other charges | 109,873 | 78,011 | 40.84% |
| Total non mark-up/interest expenses | 13,648,377 | 11,764,642 | 16.01% |
| Share of profit of associates | 162,993 | 142,144 | |
| Profit before provisions | 22,433,144 | 15,888,126 | 41.19% |
| Credit loss allowance and write offs – net | (162,755) | 2,309,777 | – |
| Extra ordinary / Unusual items | – | – | – |
| Profit before taxation | 22,595,899 | 13,578,349 | 66.41% |
| Taxation | 10,988,971 | 5,894,122 | 86.44% |
| Profit after taxation | 11,606,928 | 7,684,227 | 51.05% |
| Earnings per share – Basic and Diluted (in Rupees) | 10.14 | 6.71 | – |
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Posted on: 2024-04-24T13:03:14+05:00
