KARACHI: Allied Bank Limited (ABL) announced a decrease in its net profit for the third quarter of the calendar year 2025, reflecting a challenging economic environment. The bank reported a net profit after tax (NPAT) of PKR 8.4 billion, equivalent to earnings per share (EPS) of PKR 7.4. This represents a 30% decline year-on-year and a 9% decrease from the previous quarter.

The financial results were in line with expectations from analysts at AKD Securities Limited. In addition to the earnings announcement, ABL declared an interim cash payout of PKR 4.0 per share, bringing the total cash payout for the first nine months of 2025 to PKR 12.0 per share.

The bank's net interest income (NII) for the quarter was recorded at PKR 26.9 billion, marking a 15% decrease compared to the same period last year, but a 3% increase from the second quarter of 2025. This was attributed to a larger asset book, which was counterbalanced by lower yields.

Mark-up earned during the quarter was PKR 78.2 billion, a decrease of 21% year-on-year, but an increase of 9% quarter-on-quarter. Mark-up expenses were recorded at PKR 51.2 billion, showing a 24% decline from the previous year and a 12% rise from the previous quarter. The bank's net interest margins (NIMs) were estimated to have decreased to 3.9% in the third quarter of 2025, down from 5.9% in the same period last year.

Non-interest income for ABL increased by 9% year-on-year and 1% quarter-on-quarter, amounting to PKR 7.0 billion for the quarter. The bank continues to navigate a challenging financial landscape, balancing asset growth with declining yields and managing expenses effectively.