Karachi, April 27, 2023 (PPI-OT): Commercial Banks - Allied Bank Limited

Earnings: Allied Bank Limited (ABL) announced its financial result for the first quarter of the year 2023. As per the financial result, the Bank reported earnings of PKR 7.6bn (PKR 6.6/share) during 1QCY23 compared to PKR 4.8bn (PKR 4.2/share) last year, an increase of +57%y/y.

Dividend/Payout: The Company announced cash dividend of PKR 2.5/share along with the result this quarter compared to PKR 2/share last year same period.

Operating Performance: During the period under review, the Bank reported net-interest income of PKR 21bn (up by +64%y/y) and non-interest income of PKR 7bn (up by 68%y/y). As a result, total revenue of the bank stood at PKR 27bn (up by +65%y/y). Moreover, ABL recorded operating expenses of PKR 12bn (up by +31%y/y), which improved the bank’s cost/income ratio to 42% (last year: 53%). The bank booked provision charge of PKR 2.3bn during 1QCY23 compared to provision charge of PKR 0.3bn last year same period. Tax charge for this quarter came at PKR 6bn (effective tax rate of 43% compared to 40% in 1QCY22).