KARACHI, October 30, 2024: Allied Bank Limited (ABL) has released its financial results for the third quarter of the calendar year 2024, reporting earnings per share (EPS) of PKR 10.84, a 9% increase year-on-year (YoY). While the quarterly earnings remained stable compared to the previous quarter, the bank’s performance for the first nine months of the year saw a remarkable 26% YoY increase, with total earnings reaching PKR 36.5 billion.
Key Financial Highlights:
- Total Earnings: ABL reported third-quarter earnings of PKR 12.4 billion, supported by a notable increase in total income and a reversal of provisions.
- Cash Dividend: The bank announced a cash dividend of PKR 4.0 per share for 3QCY24, bringing the total payout for the first nine months of 2024 to PKR 12.0 per share.
Detailed Financial Metrics:
- Net Interest Income: The bank’s interest income rose to PKR 98.9 billion in 3QCY24, up 4% YoY and 1% QoQ. Interest expenses increased by 3% YoY but declined by 2% QoQ to PKR 67.2 billion, resulting in a net interest income of PKR 31.7 billion—up 6% YoY and totalling PKR 90.3 billion for 9MCY24, reflecting a 12% YoY increase.
- Non-Funded Income (NFI): NFI surged by 40% YoY during the quarter, totalling PKR 21.5 billion for the first nine months of 2024, a 27% increase. This growth was primarily driven by a substantial gain on the sale of securities, which increased 139 times YoY, alongside a 35% rise in fee income to PKR 11.5 billion.
- Provisioning: ABL recorded a provisioning charge of PKR 83 million in 3QCY24, bringing the total provisioning reversal for 9MCY24 to PKR 2.93 billion, compared to a charge of PKR 2.53 billion in the same period last year.
- Operating Expenses (OPEX): The bank’s operating expenses increased by 18% YoY, totalling PKR 15.0 billion in 3QCY24. The cost-to-income ratio stood at 38.5%, up from 36.1% in the same quarter last year.
- Tax Rate: The effective tax rate for 3QCY24 was 48.1%, a slight decrease from 50.3% in the previous year.
Conclusion
Allied Bank Limited’s robust financial performance in 3QCY24, characterized by strong growth in both interest and non-funded income, along with successful provisioning management, underscores its position in the competitive banking sector. The declaration of a cash dividend reflects the bank’s commitment to delivering value to its shareholders while navigating a challenging economic landscape. As ABL continues to adapt and innovate, its focus on enhancing income streams positions it well for sustained growth in the future.
