ISLAMABAD: Allied Bank Limited (PSX: ABL) reported a profit after tax of Rs17.98 billion for the first half of 2025, reflecting a 25.3% decline from Rs24.08 billion in the same period last year. The bank’s earnings per share (EPS) for the half year stood at Rs15.71, down from Rs21.03 in 2024.
For the period, ABL declared a dividend of Rs4 per share. The drop in profits was largely driven by a 25.3% decrease in mark-up income, which fell to Rs143.65 billion, while interest expenses dropped by 31.3% to Rs91.92 billion. This resulted in a decline of 11.6% in net mark-up income, which stood at Rs51.73 billion.
Despite the overall decline in income, non-mark-up income saw an 8.7% increase, driven by higher fee and commission income, which rose by 23.4%, and a significant 101.2% increase in gain on securities. However, dividend income and foreign exchange income both saw declines.
On the expense side, operating expenses increased by 15.3% to Rs31.99 billion, contributing to a rise in total non-mark-up expenses by 13.9%. Credit loss allowances and write-offs stood at Rs3.31 billion, leading to a 19.9% decrease in profit before tax, which amounted to Rs37.80 billion. The bank’s taxation expense decreased by 14.5% to Rs19.82 billion.
As of 3:00 pm, ABL’s stock price stood at Rs187.50, down by Rs5.57 (-2.88%) from the previous day, reflecting the market’s reaction to the weaker-than-expected earnings and also a broader market trend after political unrest.
