Allied Bank retains its profitability in 1H 2015
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. 17.so/o 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.