ABL sees 27% decline in quarterly earnings

April 24, 2025 (MLN):  Allied Bank Limited (ABL) reported a net profit after taxation of Rs8.48 billion [EPS: Rs7] for the quarter ended March 31, 2025, reflecting a 26.97% decline from Rs11.61bn [EPS: Rs10] earned in the same period last year.

The bank has declared an interim cash dividend of Rs4 per share, equivalent to 40% of the face value.

The bank’s total income fell by 7.42% to Rs33.25bn, compared to Rs35.92bn in the corresponding quarter of the previous year, primarily due to a 12.85% decline in net mark-up/interest income, which stood at Rs25.4bn.

Non-mark-up income, however, grew by 16% to Rs7.85bn, supported by higher foreign exchange income (up 36.79%) and a significant 146% increase in gains on securities. Fee and commission income also improved by nearly 11%.

Operating expenses rose 17.38% to Rs15.34bn, contributing to the overall cost burden. Other expenses and the workers’ welfare fund both declined, offering slight relief.

Share of profit from associates dropped by 41.65%, while credit loss allowance and write-offs amounted to Rs135m, compared to Rs163m last year.

Profit before taxation came in at Rs17.71bn, down 21.62% from Rs22.6bn, with taxation at Rs9.23bn, slightly lower than the Rs10.99bn paid in the same quarter of 2024.