ABL profit surges to 41.3bn, marking a 94% increase year-on-year

This increase is largely attributed to a 65.7 percent rise in interest-earning to Rs357 billion

Allied Bank Limited (ABL) has reported a significant year-on-year growth in its financial performance for the year 2023.

The bank’s profit after tax surged to Rs41.3 billion, marking a 94.38% increase from the Rs21.25 billion recorded in 2022. This was disclosed in the Financial Results sent to the Pakistan Stock Exchange (PSX) on Tuesday (today).

This translates to an earnings per share (EPS) of Rs36.07, up from Rs18.56 in the previous year.

In response to the robust financial results, the Board of Directors at ABL has recommended a final cash dividend of Rs4 per share, which amounts to 40%.

This comes in addition to the interim dividends already distributed at Rs8 per share, totaling an 80% dividend payout for the year.

A key driver of ABL’s impressive performance has been its net interest income (NII), which rose by 69.26% year-on-year to Rs112.9 billion, up from Rs66.7 billion.

This increase is largely attributed to a 65.7% rise in interest-earning to Rs357 billion.

The bank also experienced growth in its total non-markup income, which increased by 19.33% to Rs25.6 billion.

This was buoyed by a significant 32.3% increase in fee, commission, and brokerage income, reaching Rs11.8 billion.

Additionally, dividend income and foreign exchange income saw increases of 14.8% and 15.3%, reaching Rs3.5 billion and Rs9.2 billion, respectively.

However, ABL reported a 39.7% decrease in gains from the sale of securities, which stood at Rs844.8 million for the year.

Meanwhile, the bank also reported a provision reversal of Rs2.98 billion in 2023, a positive shift from the provision expense of Rs260.9 million in 2022.

On the expenditure side, total non-markup expenses rose by 19.5% to Rs49.7 billion in 2023, from Rs41.6 billion in the preceding year.

This increase was primarily due to an 18.5% rise in operating expenses, which climbed to Rs47.7 billion.

Additionally, contributions to the Workers’ Welfare Fund were also higher during the year.

In terms of taxation, ABL’s tax payments witnessed a significant increase, totaling Rs45.5 billion, which is 78.2% higher than the previous year’s payments.

 

5 COMMENTS

  1. Tha bank shows good pretax profit,but it must give good handsome pay to employees also.Not peanuts.They are backbone of the bank.

  2. Allied bank is a very good bank.But there is shortage of staff in some branches,just as branch near Bahria town,Head office,Rwp has a lot of work,but accute shortage of staff The president of the bank should provide them ample staff so that the clients don’t suffer.

  3. This bank like other nationalized banks were about to insolvent under govt control. No matter how much malpractices done during nationalization ,still de – nationalize banks contribute a lot to national economy,national exchequer, share holders etc.
    Moral of the story is transfer management of loss making units under govt control to private enyerprenure. To make loss making govt enterprises contribute positively in national wealth.
    Some economists who based their opinion on socialism may not agree to this problem but performance of banks under govt/private control make cristal clear what is viable option.
    As regards to giving due share of profit to employees for their performance is that this is ruthless world. There is no such thing like free lunch. Survival of the fittest is the order of day. Employees must improve their skill/ knowledge/performance to make them more useful/viable for organization. They should plan their carrier in such a way that their performance stand head and shoulder above others.
    Keep your options open. No matter how much artificial intelligence come into work in organizations,still the human brain and efforts can not be matched. Gone are days when you start your carrier/ finish your carrier in same company.
    If entrepreneur have tools to reduce salary/ perks of employees, we do have the knowledge to make our self indispensable for the organization. Don’t call this cat and mouse struggle.

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