October 26, 2023 (MLN): Allied Bank Limited (PSX: ABL’s) profit for the 9MCY23 saw growth of 41.89% YoY, clocking in its profit at Rs29.03 billion [EPS: 25.35], compared to Rs20.46bn [EPS: 11.04] recorded in the Same Period Last Year (SPLY), bank’s filing on PSX revealed today.
Along with the 9MCY23, the Board of Directors (BoD) of ABL has recommended an interim cash dividend for 3QCY23 at Rs3 per share i.e. 30%.
This is in addition to interim Dividend(s) already paid at Rs5 per share i.e. 50%.
Going by the income statement, the bank witnessed an increase of 77.52% YoY in its net interest income (NII) to stand at Rs80.66bn, compared to Rs45.44bn in SPLY. The surge in NII is due to a jump in interest-earning (Rs264.05bn), up by 78.94% YoY.
During the period under review, the bank’s total non-markup income also increased by 4.64% YoY to Rs17.61bn, owing to a significant jump in fee, commission, and brokerage income of 31.01% YoY to Rs8.52bn.
Similarly, ABL’s dividend income went up by 31.98% YoY to Rs2.72bn during the review period.
Conversely, the foreign exchange income and the gain on sale of securities reported by the bank fell by 19.06% YoY and 49.42% YoY to Rs5.78bn and Rs531.04m respectively.
Moving forward, the profit and loss statement shows that a provision reversal of Rs2.53bn was incurred during 9MCY23, against a provision expense of Rs696.58m in the SPLY.
On the expense side, the total non-markup expenses increased by 24.85% YoY to Rs37.28bn in 9MCY23 compared to Rs29.86bn in 9MCY22.
The increase was attributed to a 28.13% YoY jump in operating expenses, rising from Rs28.89bn in 9MCY22 to Rs35.81bn in 9MCY23.
Additionally, the bank’s expenses related to the Workers' Welfare Fund also went up during the review period.
On the tax front, the bank paid Rs29.43bn, 2.33x YoY higher than the amount paid in 9MCY22.
| Consolidated Profit and Loss Account for the nine months ended on September 30, 2020 (Rupees in '000) | |||
|---|---|---|---|
| Sep-23 | Sep-22 | % Change | |
| Mark-up/return/interest earned | 264,045,939 | 147,559,783 | 78.94% |
| Mark-up/return/interest expensed | 183,384,668 | 102,121,357 | 79.58% |
| Net mark-up/interest income | 80,661,271 | 45,438,426 | 77.52% |
| NON-MARK-UP/INTEREST INCOME | |||
| Fee and commision income | 8,518,587 | 6,502,390 | 31.01% |
| Dividend income | 2,716,315 | 2,058,149 | 31.98% |
| Foreign exchange income | 5,780,773 | 7,141,783 | -19.06% |
| Income from derivatives | – | – | – |
| Gain on sale of securities – net | 531,037 | 1,049,868 | -49.42% |
| Other income | 63,824 | 77,834 | -18.00% |
| Total non mark-up/interest income | 17,610,536 | 16,830,024 | 4.64% |
| Total Income | 98,271,807 | 62,268,450 | 57.82% |
| NON-MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | 35,806,553 | 28,885,990 | 23.96% |
| Workers welfare fund | 1,208,627 | 695,471 | 73.79% |
| Other charges | 267,453 | 280,347 | -4.60% |
| Total non mark-up/interest expenses | 37,282,633 | 29,861,808 | 24.85% |
| Profit before provisions | 60,989,174 | 32,406,642 | 88.20% |
| Provisions/(reversals) and write-offs | 2,532,240 | (696,581) | – |
| Extraordinary / Unusual items | – | – | – |
| Profit before taxation | 58,456,934 | 33,103,223 | 76.59% |
| Taxation | 29,425,489 | 12,642,781 | 132.75% |
| Profit after taxation | 29,031,445 | 20,460,442 | 41.89% |
| Earnings per share – Basic and Diluted (in Rupees) | 25.35 | 11.04 | – |
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Posted on: 2023-10-26T12:32:59+05:00
