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

MG News | February 17, 2021 at 01:23 PM GMT+05:00

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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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