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HomeEquityABL’s profitability shrinks by 23% YoY in 1HCY22

ABL’s profitability shrinks by 23% YoY in 1HCY22

August 17, 2022 (MLN): The bottom line of Allied Bank Limited (PSX: AKBL) has contracted by 23% YoY in  1HCY22 ended June 30, 2022, to stand at Rs6.82billion (EPS: Rs5.96), compared to Rs8.87bn (EPS: 7.75) in 1HCY21, bank’s filing on PSX revealed today.

Despite the contraction witnessed in profits, the bank has announced an interim cash dividend for the quarter ended June 30, 2022, at Rs2 per share i.e., 20%. This is in addition to the interim dividend already paid at Rs2 per share i.e., 20%.

Going by the income statement sent to PSX, the bank’s net interest income (NII) increased by 19.56% YoY to stand at Rs27.5bn. The jump in NII is due to an increase in interest-earning (Rs87.57bn), up by 64.18% YoY while the interest expense expanded by 98% YoY to Rs607bn.

During the period under review, the bank’s non-funded income (NFI) jumped by 31.34% YoY to Rs10.98bn owing to the massive surge in foreign exchange income which stood at Rs4.29bn, up by 6.4x YoY.   In addition, the increment in fee and commission income (up by 16.86%) and dividend income (11.56%) have also supported NFI.

It is pertinent to mention that the bank posted a significant decline under its gain on securities head by 61.55% to stand at Rs1bn in 1HCY22, compared to Rs2.6n in SPLY.

The non-markup interest expense has jumped by 14% YoY to lock in at Rs19.15bn during 1HCY22.

On the tax front, the bank paid Rs13.26bn in 1HCY22, more than double the amount paid in 1HCY21.

 

Profit and Loss Account for the half year ended on June 30, 2022 (Rupees in '000)

 

Jun-22

Jun-21

% Change

Mark-up/return/interest earned

87,572,297

53,338,666

64.18%

Mark-up/return/interest expensed

60,063,479

30,330,202

98.03%

Net mark-up/interest income

27,508,818

23,008,464

19.56%

NON-MARK-UP/INTEREST INCOME

   

Fee, commission income

4,264,204

3,649,104

16.86%

Dividend income

1,384,070

1,240,696

11.56%

Foreign exchange income

4,295,911

662,531

548.41%

Income from derivatives

   –  

  –  

 

Gain/(loss) on sale of securities – net

1,012,605

2,633,870

-61.55%

Other income

32,293

180,906

-82.15%

Total non mark-up/interest income

10,989,083

8,367,107

31.34%

Total Income

38,497,901

31,375,571

22.70%

NON MARK-UP/INTEREST EXPENSES

   

Operating expenses

18,512,930

16,404,588

12.85%

Workers welfare fund

425,448

315,884

34.68%

Other charges

215,815

78,465

175.05%

Total non mark-up/interest expenses

19,154,193

16,798,937

14.02%

Profit before provisions

19,343,708

14,576,634

32.70%

Provisions / (reversals) and write offs – net

-749,192

-309,544

142.03%

Extra ordinary / Unusual items

  –  

 –  

 

Profit before taxation

20,092,900

 14,886,178

34.98%

Taxation

13,267,028

6,010,088

120.75%

Profit after taxation

6,825,872

 8,876,090

-23.10%

Earnings per share – Basic and Diluted (in Rupees)

5.96

7.75

-23.10%

 

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Posted on:2022-08-17T12:52:06+05:00

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