ABL profit surges 95pc in 2023, announces 40pc final dividend

KARACHI: Allied Bank Ltd (ABL) reported a 95 percent jump in its 2023 profit after tax, driven by higher net interest income and fee income, according to a stock filing on Tuesday.

The bank posted a profit of Rs41.3 billion for the year ended Dec. 31, 2023, compared with Rs21.2 billion a year earlier. Earnings per share rose to Rs36.07 from Rs18.56.

The board of directors also declared a final cash dividend of Rs4 per share, or 40 percent, bringing the total payout for the year to Rs12 per share, or 120 percent. Net interest income, the difference between interest earned and interest paid, increased by 69 percent to Rs112.9 billion, as the bank benefited from a higher interest rate environment.

The bank said its interest-earned income for the year rose to Rs357.008 billion, compared with Rs215.477 billion a year earlier. Interest expenses also remained higher at Rs244.096 billion from Rs148.768 billion a year ago.

Fee and commission income, which includes charges on loans, cards and trade services, rose by 32 percent to Rs11.84 billion , while income from foreign exchange operations grew by 15 percent to Rs9.17 billion.

Non-interest expenses rose by 20 percet to Rs49.7 billion in 2023, compared to Rs41.6 billion in the preceding year. The bank’s provision for bad loans decreased by 12 percent to RS3.8 billion, reflecting an improvement in the quality of its loan portfolio.