Karachi: Allied Bank Limited (ABL) has reported a substantial increase in its profits for the first half of the calendar year 2024, during an analyst briefing held earlier today. The bank’s profit surged by 36% year-on-year to PKR 23.6 billion, driven by significant growth in Net Interest Income (NII), Non-markup Income, and a provision reversal.

According to AKD Securities Limited, ABL’s NII rose by 15% year-on-year to PKR 58.5 billion, supported by a 14% increase in interest income, which offset a 13% rise in interest expense. Non-markup income also increased by 18% to PKR 13.4 billion, primarily due to substantial growth in fee and commission income and a slight increase in dividend income. The bank further benefited from a reversal of provisions amounting to PKR 3.1 billion, contrasting with the previous year’s expense of PKR 2.7 billion.

The briefing highlighted that ABL’s total assets grew by 8% year-on-year, trailing the industry average of 12%. This growth was partly fueled by a 12% increase in deposits and a corresponding rise in investments, which reached PKR 1.28 trillion. Notably, the bank enhanced its exposure to Pakistan Investment Bonds (PIBs) by PKR 165.2 billion, while reducing its holdings in Treasury bills.

Despite a slight decrease in net advances, which fell by 1% to PKR 773 billion, ABL’s non-performing portfolio saw a 5% reduction, resulting in an infection ratio significantly lower than the industry average. The bank’s specific and overall coverage ratios stood at impressive levels, further underscoring its robust asset quality.

ABL also plans to expand its branch network, adding 30 new branches this year, bringing the total to over 1,500. The bank’s capital adequacy ratio notably improved to 30.1%, reflecting strong capital management and financial health.