Allied Bank Posts Highest Ever Quarterly Profit in Q2 2024

Allied Bank Limited (PSX: ABL) announced earnings today for 2QCY24 at Rs. 12.5 billion, depicting an uptick of 25 percent YoY | 7 percent QoQ.

This is the highest-ever quarterly profit after tax recorded by the company, according to Arif Habib Limited.

For 1HCY24, total earnings amounted to Rs. 24.1 billion. marking a 37 percent YoY increase. The rise in earnings on a YoY basis is fueled by a jump in total income and provisioning reversals. The bank also announced a cash dividend of Rs. 4/share in 2QCY24 along with the result taking the total payout for 1HCY24 to Rs. 8/share.

The bank’s Net Interest income (NII) amounted to Rs. 29.4 billion for 2QCY24, marking a YoY decline of 3 percent, However, on a QoQ basis, NII showed a slight increase of 1 percent. The bank faced a rise in interest expenses, which increased by 6 percent YoY and 5 percent QoQ. On the other hand, interest income grew by 3 percent YoY and 4 percent QoQ.

The bank’s Non-Funded Income (NFI) surged by 59 percent YoY during 2QCY24, bringing the total for 1HCY24 to Rs. 14.2 billion, a 21 percent YoY increase. This increase is largely driven by a gain of Rs.  838 million from the sale of securities, up from Rs. 211 million in the same period last year.

Additionally, fee and commission income surged by 33 percent YoY to Rs. 7.4 billion in 1HCY24. However, foreign exchange income saw a 7 percent YoY decline, amounting to Rs. 4.1 billion during 1HCY24.

ABL posted earnings per share (EPS) of Rs. 10.89 for Q2 and Rs. 21.03 in H1 2024.

The bank’s scrip at the bourse closed at Rs. 112.62, up 0.46 percent or Rs. 0.52 with 257,629 shares on Wednesday.