Allied Bank’s net income during 9MCY20 surges by 31% YoY

October 21, 2020 (MLN): Allied Bank Limited (ABL)’s net income for the nine months period ended on September 2020 has clocked in at Rs 12.6 billion compared to the earnings of Rs 9.6 billion reported in the corresponding period last year, depicting a growth of 31% YoY.

This caused the Bank’s earnings per share to settle at Rs 11.03 as opposed to Rs 8.42 in the same period last year.

The growth in bank’s profitability was attributed to healthy 29% YoY growth in net interest income (NII). The earnings further strengthened by 3x increase in capital gains, offsetting a significant net provisioning charge of Rs 2.4 billion during the period.

According to the report by Arif Habib Limited, the YoY jump in NII was primarily owing to a steep reduction in the bank’s interest expense (15% YoY).

The total non-interest income of the bank posted a surge of 16.49% YoY during 9MCY20 primarily owing to capital gains this year of Rs 2.8 billion against a gain of Rs 910.6 million in the same period last year.  

Furthermore, the bank’s Fee and commission Income also improved the overall profitability, as it clocked in at Rs 4.6 billion during the period mentioned above against Rs 4.1 billion recorded during 9MCY19.

On the other hand, as international trade activities remained subdued due to pandemic, the bank’s foreign exchange income plunged by 20% YoY, said the report.

On the expense side, the bank reported provisioning expense of Rs 2.4 billion against a reversal of Rs 356 million, further, its operating expenses also surged by 10% YoY.

Lastly, the bank witnessed 15ppts decline in affective tax rate from 57% to 42% during 9MCY20 which further supported bank’s earnings.

Consolidated Profit and Loss Account for the Nine months ended on September 30th, 2020 (Rupees in '000)

 

Jun-20

Jun-19

% Change

Mark-up/return/interest earned

                     86,631,705

                     86,985,661

-0.41%

Mark-up/return/interest expensed

                     49,451,922

                     58,207,069

-15.04%

Net mark-up/interest income

                     37,179,783

                     28,778,592

29.19%

NON-MARK-UP/INTEREST INCOME

 

 

 

Fee and commission income

                       4,600,159

                       4,106,308

12.03%

Dividend income

                           967,301

                       1,405,198

-31.16%

Foreign exchange income

                       1,295,358

                       1,611,094

-19.60%

Income from derivatives

 –

 –

Gain on sale of securities – net

                       2,802,407

                           910,674

207.73%

Other income

                           107,027

                           355,814

-69.92%

Total non-mark-up/interest income

                       9,772,252

                       8,389,088

16.49%

Total Income

                     46,952,035

                     37,167,680

26.32%

NON-MARK-UP/INTEREST EXPENSES

 

 

 

Operating expenses

                     22,130,783

                     20,228,505

9.40%

Workers welfare fund

                           498,394

                           344,944

44.49%

Other charges

                           169,225

                           104,123

62.52%

Total non-mark-up/interest expenses

                     22,798,402

                     20,677,572

10.26%

Profit before provisions

                     24,153,633

                     16,490,108

46.47%

Provisions/(reversals) and write offs

                       2,408,381

                        (356,364)

Extra ordinary / Unusual items

                                      –  

                                      –  

Profit before taxation

                     21,745,252

                     16,846,472

29.08%

Taxation

                       9,111,618

                       7,209,386

26.39%

Profit after taxation

                     12,633,634

                       9,637,086

31.09%

Earnings per share – Basic and Diluted (in Rupees)

                               11.03

                                  8.42

31.00%

 

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Posted on: 2020-10-21T16:54:00+05:00

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