Al­lied Bank re­tains its prof­itabil­ity in 1H 2015

The Pak Banker - - FRONT PAGE -

Al­lied Bank Lim­ited (ABL) has con­tin­ued to post prof­itabil­ity that stands 4 per­cent in the first half of 2015 with growth recorded in the core and non-core in­come in­clud­ing net in­ter­est in­come and dif­fer­ent oper­a­tions of the bank.

The re­sult re­vealed stated that bank wit­nessed de­cline of 17 per­cent in the sec­ond quar­ter of 2015 on the pay­ment of un­paid taxes how­ever it main­tained an in­crease in profit and rev­enues in the over­all sec­ond half of 2015. The profit in­creased to Rs 7.5 bil­lion by end of June 2015 as com­pared with Rs 7.195 bil­lion. Whereas, bank's profit dropped to 17 per­cent to Rs 3.23 bil­lion from Rs 3.9. ABL's rev­enue from in­ter­est in­come grew to stand at Rs 16.8 bil­lion by the end of June 2015 as com­pared with 12.8 bil­lion stand­ing by the end of same pe­riod of last year. Sur­pris­ingly, the non-markup in­come of the bank de­creased to Rs 5.99 bil­lion from Rs 6.38 bil­lion. The rev­enues of the bank reg­is­tered a hand­some growth of 18.6 per­cent in­creas­ing to Rs 22.83 bil­lion in the first half as against of Rs 19.24 bil­lion of the pre­vi­ous cal­en­dar year.

It was due to the hand­some growth of 30 per­cent in the Net In­ter­est In­come (NII) de­spite of the con­sis­tent cut in the pol­icy rates by the cen­tral bank since the com­mence­ment of cal­en­dar year. The bank was able to ex­pand its core in­come due to the vol­u­met­ric growth in earn­ing as­sets and op­ti­mum as­set mix. How­ever, mul­ti­ple dis­count rate cuts dur­ing the pe­riod have churned the yield on as­sets. The bank paid up its due taxes of Rs 1.46 bil­lion but it man­aged to re­main in the profit. Board of Di­rec­tors has de­clared 17.5 % Sec­ond in­terim Cash Div­i­dend (i.e. Rs. 1.75 per share), for the year end­ing De­cem­ber 31, 2015. This is in ad­di­tion to the First in­terim Div­i­dend of Rs. 1.75 per share i.e. al­ready paid.

The bank re­mains cog­nizant of the pos­i­tive eco­nomic in­di­ca­tors and duly cap­i­tal­ized on avail­able op­por­tu­ni­ties by con­sis­tently fol­low­ing up strat­egy of steady growth through fur­ther aug­ment­ing risk man­age­ment frame­work, en­hanc­ing the ser­vice de­liv­ery ef­fi­ciency while con­tin­u­ously fo­cus­ing on strength­en­ing in­for­ma­tion tech­nol­ogy plat­form and build­ing up qual­ity earn­ing as­sets port­fo­lio to in­crease prof­itabil­ity dur­ing the quar­ter.

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