Allied Bank sees a 27% improvement in earnings despite lower interest income

February 17, 2021 (MLN): Allied Bank Limited has announced earnings of Rs. 18.3 billion (EPS: 16.05) for the year ended December 31, 2020, i.e. nearly 27% higher than the earnings recorded in the same period of last year.

The bank also announced a final Cash Dividend for the year at Rs. 6.00 per share i.e. 60%. This is in addition to interim dividends already paid at Rs. 2.00 per share i.e. 20%.

Despite a fall in its interest income by 10%, ABL was able to lift its net interest income by 15% owing to a 23% decline in interest expense. Further boost came from a 98% increase in gain on securities, which helped in raising the total income by 15.3%.

However, the bank also saw a rise of 9.3% in total expenses owing to payment of Rs. 626.5 million made in workers’ welfare fund.

The earnings took a slight hit from the rise in income tax expense by nearly 14%.

Consolidated Financial Results for the year ended December 31, 2020 (Rupees in '000)

 

Dec-20

Dec-19

% Change

Mark-up/return/interest earned

110,548,776

122,638,580

-9.9%

Mark-up/return/interest expensed

(62,153,107)

(80,760,742)

-23.0%

Net mark-up and interest income

48,395,669

41,877,838

15.6%

NON-MARK-UP / INTEREST INCOME

   

Fee and commission income

6,184,600

5,703,136

8.4%

Dividend income

1,773,857

1,902,872

-6.8%

Foreign exchange income

1,663,815

1,992,194

-16.5%

Income from derivatives

   

Gain on securities – net

3,487,325

1,763,512

97.7%

Other income

333,627

395,412

-15.6%

Total non-markup / interest income

13,443,224

11,757,126

14.3%

Total income

61,838,893

53,634,964

15.3%

NON-MARK-UP / INTEREST EXPENSES

   

Operating expenses

(30,281,195)

(28,965,941)

4.5%

Workers welfare fund – net

(626,529)

774,603

 

Other charges

(112,682)

(195,045)

-42.2%

Total non-markup / interest expenses

(31,020,406)

(28,386,383)

9.3%

Profit before provisions

30,818,487

25,248,581

22.1%

Provisions and write offs – net

(843,550)

(546,658)

54.3%

Extra-ordinary / unusual items

   

PROFIT BEFORE TAXATION

29,974,937

24,701,923

21.3%

Taxation

(11,597,332)

(10,213,160)

13.6%

PROFIT AFTER TAXATION

18,377,605

14,488,763

26.8%

Basic and diluted earnings per share

16.05

12.65

26.9%

 

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Posted on: 2021-02-17T13:23:00+05:00

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