Allied Bank posts Rs17.315bn PBT

LAHORE: Allied Bank posted markup income of Rs. 71,647 million for the quarter ended March 31, 2025. This represents a 24% decrease from Rs. 94,312 million for the quarter ended March 31, 2024.

Mark-up/Interest expense for the quarter ended March 31, 2025, declined to Rs. 46,283 million, representing a 29% decrease from Rs. 65,165 million recorded in the corresponding period last year. This decline is primarily attributable to a reduction in the cost of deposits and borrowing expenses, supported by a decrease in the benchmark policy rate. Consequently, net markup/interest income stood at Rs. 25,364 million for the quarter under review, down by 13% from Rs. 29,147 million in the same period last year.

Fee income increased by 5%, reaching Rs. 3,723 million as of March 31, 2025, compared to Rs. 3,549 million as of March 31, 2024. This growth was primarily driven by higher card- related fees, branch banking customer fees, and the card acquiring business.

Capital gain increased by 146% to Rs. 745 million for the quarter ended March 31, 2025, compared to Rs. 303 million for the corresponding quarter last year, due to gain on Euro Bonds and federal government securities. Dividend income for the quarter under review reached Rs. 850 million, decreased by 13% compared to Rs. 976 million for the same period last year.

Foreign exchange Income of the Bank increased by 36% to reach Rs. 1,728 million for the quarter ended March 31, 2025, compared to Rs. 1,272 million for the corresponding quarter last year. This increase is primarily attributable to comparatively favorable swap curve.

Driven by higher fee income, capital gain and foreign exchange income, partially offset by lower dividend income and other income, total non-markup income of ABL increased by 13% reaching Rs. 7,148 million for the quarter ended March 31 2025, compared to Rs. 6,335 million in the corresponding quarter of the previous year.

Administrative expenses grew by 15% in the first quarter of 2025, reaching Rs. 15,333 million compared to Rs. 13,378 million in the same period of 2024. The increase was primarily driven by higher expenditure on advertisement and publicity, depreciation and amortization, fee and subscription, deposit protection and card related Expenses.

The Bank recorded a profit before taxation of Rs. 17,315 million for the quarter ended March 31, 2025, reflecting a 22% decrease compared to Rs. 22,266 million in the corresponding quarter of the previous year.

Profit after taxation for the quarter under review stood at Rs. 8,190 million, marking a 28% decline compared to Rs. 11,364 million for the quarter ended March 31, 2024. The Bank declared Rs. 4.00 dividend for the first quarter 2025.

Earnings per share of the Bank stood at Rs. 7.15 for the quarter March 31, 2025, compared to Rs. 9.92 for the quarter ended March 31, 2024.

Allied Bank is committed to a hybrid expansion approach that blends “digital” and “brick- and-mortar” banking operations, with an increased focus on digital banking products and services. The Bank operates a large ATM network consisting of 1,650 machines, including 1,403 on-site, 242 off-site, and 5 Mobile Banking Units (MBU). As of the end of the quarter,

the Bank’s branch outreach increased to 1,512 branches, with 1,333 conventional, 161 Islamic banking branches and 18 digital branches.

As of March 31, 2025, Allied Bank’s total assets stood at Rs. 2,737,977 million, reflecting a 3% decline from Rs. 2,816,969 million as of December 31, 2024. Notable increases were observed in investments, property and equipment, and other assets. Despite the decline in total assets, the Bank’s net assets increased by 2%, rising to Rs. 237,512 million from Rs. 233,901 million over the same period.

Gross advances and net advances reached Rs. 827,739 million and Rs. 812,455 million respectively as of March 31, 2025, compared to Rs. 1,066,348 million and Rs. 1,051,314 million as of December 31, 2024. The non-performing advances portfolio stood at Rs. 13,281 million as of March 31, 2025.

Allied Bank maintained robust risk management framework and practices resulting in the lowest infection ratio which stood at 1.6% as on March 31, 2025, whereas coverage ratio remained at 115.3%.

Deposits of the bank stood at Rs. 2,051,874 million as of March 31, 2025, compared to Rs. 2,018,395 as of December 31, 2024, registering a growth of 2%.

Total investments of the Bank grew by 32% to reach Rs. 1,495,565 million as of March 31, 2025, compared to Rs. 1,129,874 million as of December 31, 2024. This increase was primarily driven by a rise in investments in Treasury Bills, Sukuk Bonds, and Pakistan Investment Bonds (PIBs).

Lendings to financial institutions stood at Rs. 14,135 million as of March 31, 2025, compared to Rs. 243,541 million as of December 31, 2024 due to decrease in Repo Lendings and Call Money Lendings.

Return on Assets (ROA) and Return on Equity (ROE) were recorded at 1.2% and 18.5%, respectively, for the quarter ended March 31, 2025, compared to 1.7% and 26.0% as of December 31, 2024.

Capital Adequacy Ratio of ABL was 29.37% as of March 31, 2025, compared to 26.71% as of December 31, 2024.—PR