February 13, 2024 (MLN): Allied Bank Limited (PSX: ABL) experienced a rise of 94.38% YoY in its profitability in 2023, clocking in its profit after tax at Rs41.3 billion [EPS: Rs36.07], compared to a profit of Rs21.25bn [EPS: Rs18.56] in 2022.
Along with the results, the Board of Directors (BoD) of ABL recommended a final cash dividend of Rs4per share i.e. 40%.
This is in addition to interim Dividend(s) already paid at Rs8 per share i.e. 80%.
Going by the income statement, the bank witnessed an increase of 69.26% YoY in its net interest income (NII) to stand at Rs112.9bn, compared to Rs66.7bn in the previous year. The surge in NII is due to a jump in interest-earning (Rs357bn), up by 65.7% YoY.
During the period under review, the bank’s total non-markup income also increased by 19.33% YoY to Rs25.6bn, owing to a significant jump in fee, commission, and brokerage income of 32.3% YoY to Rs11.8bn.
Similarly, ABL’s dividend income and foreign exchange income went up by 14.8% and 15.3% YoY to Rs3.5bn and Rs9.2bn, respectively.
Conversely, the gain on the sale of securities reported by the bank fell by 39.7% YoY to Rs844.8 million during the year.
Moving forward, the profit and loss statement shows that a provision reversal of Rs2.98bn was incurred during 2023, against a provision expense of Rs260.9m in the 2022.
On the expense side, the total non-markup expenses increased by 19.5% YoY to Rs49.7bn in 2023 compared to Rs41.6bn in 2022.
The increase was attributed to a 18.5% YoY jump in operating expenses, rising from Rs40.3bn in 2022 to Rs47.7bn in the review year.
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 Rs45.5bn, 78.2% YoY higher than the amount paid in the previous year.
| Consolidated Profit and Loss Account for the year ended December 31, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec-23 | Dec-22 | % Change | |
| Mark-up/return/interest earned | 357,008,968 | 215,477,711 | 65.68% |
| Mark-up/return/interest expensed | 244,096,459 | 148,768,136 | 64.08% |
| Net mark-up/interest income | 112,912,509 | 66,709,575 | 69.26% |
| NON MARK-UP/INTEREST INCOME | |||
| Fee and commision income | 11,842,546 | 8,953,314 | 32.27% |
| Dividend income | 3,543,033 | 3,087,693 | 14.75% |
| Foreign exchange income | 9,167,089 | 7,948,096 | 15.34% |
| Income from derivatives | – | – | – |
| Gain on sale of securities – net | 844,772 | 1,399,781 | -39.65% |
| Other income | 199,649 | 62,281 | 220.56% |
| Total non mark-up/interest income | 25,597,089 | 21,451,165 | 19.33% |
| Total Income | 138,509,598 | 88,160,740 | 57.11% |
| NON MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | 47,680,724 | 40,254,537 | 18.45% |
| Workers welfare fund | 1,773,735 | 978,733 | 81.23% |
| Other charges | 235,113 | 358,006 | -34.33% |
| Total non mark-up/interest expenses | 49,689,572 | 41,591,276 | 19.47% |
| Share of profit / (loss) of associates | 965,906 | (48,468) | – |
| Profit before provisions | 89,785,932 | 46,520,996 | 93.00% |
| (Reversals)/Provisions and write offs | 2,976,973 | (260,893) | – |
| Extra ordinary / Unusual items | – | – | – |
| Profit before taxation | 86,808,959 | 46,781,889 | 85.56% |
| Taxation | 45,507,595 | 25,534,404 | 78.22% |
| Profit after taxation | 41,301,364 | 21,247,485 | 94.38% |
| Earnings per share – Basic and Diluted (in Rupees) | 36.07 | 18.56 | – |
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Posted on: 2024-02-13T11:48:34+05:00
