October 17, 2019 (MLN): The Allied Bank Limited (ABL) has witnessed 4.6% decline in its profits after tax (PAT) for the nine months ended on September 30, 2019 which locked in at Rs 9.6 billion (EPS: Rs.8.42), compared to Rs 10.1 billion (EPS: Rs 8.83) reported in the same period last year.
The bank’s interest income surged by 21.82, due to the repricing of the bank’s asset base at higher rates.
However, interest expenses increased substantially by 96.71% on the account of higher deposit rates which led to an increase in volumetric deposits. Resultantly, Net Interest Income (NII) accelerated by 21.82%.
The decline in profits was attributable to the rise in operating expenses by 18% on the back of expansionary pressure, network expansion, and compliance costs.
The Board of Directors of the Bank also announced an Interim Cash Dividend for the quarter ended September 30, 2019, at Rs. 2 per share i.e. 20%. This is in addition to dividends already paid at Rs. 4 per share i.e. 40%.
|
Profit and Loss Account for the nine months ended on September 30th, 2019 (Rupees in '000)
|
|||
|---|---|---|---|
|
|
Sep-19 |
Sep-18 |
% Change |
|
Mark-up/return/interest earned |
86,985,661 |
53,214,126 |
63.46% |
|
Mark-up/return/interest expensed |
58,207,069 |
29,591,013 |
96.71% |
|
Net mark-up/interest income |
28,778,592 |
23,623,113 |
21.82% |
|
NON MARK-UP/INTEREST INCOME |
|
|
|
|
Fee, commission income |
4,106,308 |
3,653,325 |
12.40% |
|
Dividend income |
1,405,198 |
2,117,335 |
-33.63% |
|
Foreign exchange income |
1,611,094 |
1,051,243 |
53.26% |
|
Income from derivatives |
– |
– |
– |
|
Gain/(loss) on sale of securities – net |
910,674 |
2,161,691 |
-57.87% |
|
Other income |
355,814 |
238,490 |
49.19% |
|
Total non-mark-up/interest income |
8,389,088 |
9,222,084 |
-9.03% |
|
Total Income |
37,167,680 |
32,845,197 |
13.16% |
|
NON MARK-UP/INTEREST EXPENSES |
|
|
|
|
Operating expenses |
20,228,505 |
17,135,555 |
18.05% |
|
Workers welfare fund |
344,944 |
344,173 |
0.22% |
|
Other charges |
104,123 |
77,885 |
33.69% |
|
Total non-mark-up/interest expenses |
20,677,572 |
17,557,613 |
17.77% |
|
Profit before provisions |
16,490,108 |
15,287,584 |
7.87% |
|
Net reversal against provisions and write offs |
356,364 |
1,316,172 |
-72.92% |
|
Extra ordinary / Unusual items |
– |
– |
|
|
Profit before taxation |
16,846,472 |
16,603,756 |
1.46% |
|
Taxation |
7,209,386 |
6,495,580 |
10.99% |
|
Profit after taxation |
9,637,086 |
10,108,176 |
-4.66% |
|
Earnings per share – Basic and Diluted (in Rupees) |
8.42 |
8.83 |
-4.64% |
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