Karachi: Allied Bank Limited (ABL) has announced its financial results for the fourth quarter of the calendar year 2025, reporting a net profit after tax of PkR9.3 billion, equating to earnings per share of PkR8.1. This marks an increase of 25% year-on-year and 10% quarter-on-quarter. The results exceeded expectations, primarily due to a greater than anticipated reversal in provisions. The bank also declared a final cash dividend of PkR4.0 per share, bringing the total cash payout for the year to PkR16.0 per share.

According to AKD Securities Limited, ABL's net interest income for the quarter was PkR26.4 billion, reflecting a 5% increase year-on-year but a 2% decline quarter-on-quarter. This performance was driven by an expanded asset book, which helped offset a decrease in yields. The mark-up earned by the bank was recorded at PkR75.5 billion, showing declines of 12% year-on-year and 3% quarter-on-quarter, while mark-up expenses stood at PkR49.1 billion, down 19% year-on-year and 4% quarter-on-quarter. The bank's net interest margins were estimated to have decreased to 3.7% for the quarter, compared to 4.4% in the same period last year and 3.9% in the previous quarter.

Non-interest income was reported at PkR7.4 billion, representing a 9% year-on-year decrease but a 5% increase quarter-on-quarter. The annual decline was primarily attributable to significant reductions in foreign exchange income and gains from security sales, which fell by 39% and 82% year-on-year respectively. In contrast, the quarterly rise was supported by a 17% increase in fee income and a 75% increase in dividend income.