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ABL’s profitability increases at snail’s pace

August 17, 2021 (MLN): Allied Bank Limited (ABL) has announced its half yearly financial results for the period ended on June 30, 2021 today as per which the profitability of the bank has increased by 4.7% to clock in at Rs9 billion (EPS: Rs7.75), compared to the profit of Rs8 bn (EPS: Rs7.40) in 1HCY20.

Going by the bank’s financial statement sent to PSX, the major highlight from the results includes a 51% increase in dividend income which supported the bank’s non-funded income (NFI). In addition, the bank’s fee and commission income also witnessed a jump of 16%, as it clocked in at Rs3.65bn, against Rs3.15bn recorded during IHCY20.

This time, the bank observed a decline of 3.6% in its foreign exchange income to reach Rs662.5 million during the review period whereas, the capital gain on securites has climbed by 16.89% in 1HCY21.

During the period under review, the bank’s net interest income (NII) shrunk by 8.63% YoY to Rs23bn compared to the NII of Rs25.18bn in the same period of the previous year. This reduction is mainly on the back of repricing of assets at lower rate.

Further, ABL has booked provisioning reversal of Rs309.54mn during 1HCY21, compared to the provisions of Rs2.21bn corresponding to the same period of CY20 which provided a boost to the Bank’s earnings.

On the expenses front, the bank’s non-markup expenses surged by 10.37% YoY to Rs16.8bn.

On a YoY basis, operating expenses of ABL increased by 10.95% to Rs16.40bn while other charges and worker’s welfare fund declined by 12.6% YoY and 8.72%, respectively, during the period.

On the taxation front, the bank observed a reduction in effective tax rate from 43% to 40% 1HCY21. Meanwhile, ABL also announced an interim Cash Dividend of Rs2 per share for the period.

Profit and Loss Account for the half year ended on June 30th 2021 (Rupees in '000)

 

June’21

June’20

% Change

Mark-up/return/interest earned

53,338,666

61,948,091

-13.90%

Mark-up/return/interest expensed

30,330,202

36,767,248

-17.51%

Net mark-up/interest income

23,008,464

25,180,843

-8.63%

NON MARK-UP/INTEREST INCOME

     

Fee, commision and brokerage income

3,649,104

3,147,425.00

15.94%

Dividend income

1,240,696

821,666

51.00%

Income from dealing in foreign currencies

662,531

687,208

-3.59%

Gain on sale of securities – net

2,633,870

225,3350

16.89%

Other income

180,906

92,567

95.43%

Total non mark-up/interest income

8,367,107

7,002,216

19.49%

Total Income

31,375,571

32,183,059

-2.51%

NON MARK-UP/INTEREST EXPENSES

     

Operating expenses

16,404,588

14,785,094

10.95%

Workers’ welfare fund

315,884

346,064

-8.72%

Other charges

78,465

89,781

-12.60%

Total non mark-up/interest expenses

16,798,937

15,220,939

10.37%

Profit before provisions

14,576,634

16,962,120

-14.06%

provisions/reversals and write offs

(309,544)

2,209,001

Profit before taxation

14,886,178

14,753,119

0.90%

Taxation

6,010,088

6,275,753

-4.23%

Profit after taxation

8,876,090

8,477,366

4.70%

Earnings per share – Basic and Diluted (in Rupees)

7.75

7.40

4.73%

 

Copyright Mettis Link News

 

Posted on: 2021-08-17T14:46:00+05:00

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