October 27, 2021 (MLN): Allied Bank Limited (ABL) has announced its 9MCY21 result, posting consolidated profits of Rs13.20bn (EPS: Rs11.53), up by 4.5% YoY against the net profit of Rs12.63bn in the same period last year (EPS: Rs11.03), led by strong NFI growth and reversals in provisioning.
The financial result was accompanied by an interim cash dividend of Rs2 per share for the quarter ended September 30, 2021, taking a cumulative dividend to Rs6 per share.
During the period under review, the bank’s interest expenses inched up by 1.78% YoY, whereas, income came down by 2.23% YoY. As a result, the bank’s net interest income (NII) observed a decline of 7.5% YoY to Rs34.66bn during 9MCY21 due to repricing assets at lower rates.
On the other hand, non-funded income (NFI) of the bank witnessed an increase of around 26.34% YoY to clock in at Rs12.35bn due to a 21% increase in fee and commission income, 2.04x YoY upsurge in dividend income coupled with capital gains on securities of Rs3.46bn, up by 23.6% YoY during the said period. However, foreign exchange income fell by 14% YoY to Rs1.11bn during 9MCY21.
Notably, the bank posted a net reversal of Rs561mn against the provisions of Rs2.41bn in the corresponding period last year. As per Arif Habib's research, it is attributed to an improved outlook on asset quality following the rebound in economic activity across the country.
On the tax front, the effective tax rate improved to 40.5% from 41.9%.
|
Consolidated Profit and Loss Account for the Nine months ended on September 30th, 2021 (Rupees in '000) |
|||
|---|---|---|---|
|
|
Sep-21 |
Sep-20 |
% Change |
|
Mark-up/return/interest earned |
84,699,560 |
86,631,705 |
-2.23% |
|
Mark-up/return/interest expensed |
50,035,187 |
49,161,039 |
1.78% |
|
Net mark-up/interest income |
34,664,373 |
37,470,666 |
-7.49% |
|
NON-MARK-UP/INTEREST INCOME |
|
|
|
|
Fee and commission income |
5,564,382 |
4,602,890 |
20.89% |
|
Dividend income |
1,970,517 |
967,301 |
103.71% |
|
Foreign exchange income |
1,112,401 |
1,295,358 |
-14.12% |
|
Income from derivatives |
– |
– |
– |
|
Gain on sale of securities – net |
3,463,399 |
2,802,407 |
23.59% |
|
Other income |
236,073 |
104,892 |
125.06% |
|
Total non-mark-up/interest income |
12,346,772 |
9,772,848 |
26.34% |
|
Total Income |
47,011,145 |
47,243,514 |
-0.49% |
|
NON-MARK-UP/INTEREST EXPENSES |
|
|
|
|
Operating expenses |
24,794,960 |
22,422,262 |
10.58% |
|
Worker’s welfare fund |
468,007 |
498,394 |
-6.10% |
|
Other charges |
116,709 |
169,225 |
-31.03% |
|
Total non-mark-up/interest expenses |
25,379,676 |
23,089,881 |
9.92% |
|
Profit before provisions |
21,631,469 |
24,153,633 |
-10.44% |
|
(reversals)/Provisions and write offs |
(561,253) |
2,408,381 |
– |
|
Extraordinary / Unusual items |
– |
– |
– |
|
Profit before taxation |
22,192,722 |
21,745,252 |
2.06% |
|
Taxation |
8,991,327 |
9,111,618 |
-1.32% |
|
Profit after taxation |
13,201,395 |
12,633,634 |
4.49% |
|
Earnings per share – Basic and Diluted (in Rupees) |
11.53 |
11.03 |
4.53% |
Copyright Mettis Link News
27693
