Allied Bank Limited (ABL) recently released its financial results for the second quarter of 2024, showing promising improvements across several key financial indicators. <\/p>\n\n\n\n
With a YoY profit increase of 25%<\/strong>, ABL has demonstrated resilience and effective management in a challenging economic environment. <\/p>\n\n\n\n But what were the main drivers behind this growth and how do these results compare to the previous year?<\/p>\n\n\n\n In 2QCY24, ABL reported a Profit After Tax (PAT) of PKR 12,471 million<\/strong>, a significant increase from PKR 9,952 million in 2QCY23, marking a 25%<\/strong> YoY growth.<\/p>\n\n\n\n This impressive rise in profits also led to an improved EPS of PKR 10.9<\/strong>, up from PKR 8.7 in the same quarter last year. <\/p>\n\n\n\n The bank\u2019s robust earnings performance is largely attributed to controlled costs and improved income from non-markup sources.<\/p>\n\n\n\n Despite a flattish trend in Net Interest Income (NII), which saw a slight decline of 3%<\/strong> YoY to PKR 29,373 million, ABL managed to maintain its profitability. <\/p>\n\n\n\n The NII’s performance was likely constrained by increased interest expenses, which grew by 6%<\/strong> YoY due to higher repo-borrowing costs and rising yields on the asset side. <\/p>\n\n\n\n However, the bank’s overall income was supported by a strong 54% <\/strong>YoY increase in Non-Markup Income (NMI), which rose to PKR 7,642 million, driven by gains in foreign exchange income and capital gains.<\/p>\n\n\n\n This rise, coupled with an increase in the cost-to-income ratio to 41%<\/strong>, reflects the challenges posed by inflationary pressures and regulatory costs. <\/p>\n\n\n\n However, ABL’s cost management strategies have kept these increases within a manageable range, allowing the bank to sustain its profitability.<\/p>\n\n\n\n One of the standout points in ABL’s 2QCY24 results was the substantial net reversal of credit loss allowances<\/strong>, amounting to PKR 2,885 million. <\/p>\n\n\n\n This reversal marks a significant improvement from the losses recorded in the previous year, indicating effective risk management and recovery efforts. <\/p>\n\n\n\n The effective tax rate for the quarter was 49%<\/strong>, suggesting no additional charges for ADR tax, which also contributed positively to the bottom line.<\/p>\n\n\n\n Overall, ABL’s performance in 2QCY24 highlights its ability to navigate a challenging financial landscape effectively. <\/p>\n\n\n\n With strong profit growth and improved income streams, the bank remains well-positioned to continue delivering value to its shareholders.<\/p>\n\n\n\n Source: Taurus Securities Limited<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Allied Bank Limited (ABL) recently released its financial results for the second quarter of 2024, showing promising improvements across several key financial indicators.<\/p>\n","protected":false},"author":4890,"featured_media":6420,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[138,2],"tags":[119],"class_list":["post-6101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financials","category-psx-blog","tag-abl"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/ABL-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/ABL-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/ABL-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/ABL-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/6101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/4890"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=6101"}],"version-history":[{"count":0,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/6101\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6420"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=6101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=6101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=6101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Key financial indicators<\/h2>\n\n\n\n
Net Interest Income (NII)<\/strong>
<\/h3>\n\n\n\nManaging costs and risks<\/h2>\n\n\n\n
Operating expenses surged by 19% <\/strong>YoY, reaching PKR 15,279 million. <\/p>\n\n\n\nIndicator<\/strong><\/th> 2QCY24<\/strong><\/th> 2QCY23<\/strong><\/th><\/tr><\/thead> Net Interest Income (NII)<\/strong><\/td> PKR 29,373 mn <\/td> PKR 30,210 mn<\/td><\/tr> Non-Markup Income (NMI)<\/strong><\/td> PKR 7,642 mn<\/td> PKR 4,970 mn<\/td><\/tr> Operating Expenses<\/strong><\/td> PKR 15,279 mn <\/td> PKR 12,811 mn <\/td><\/tr> Profit After Tax (PAT)<\/strong><\/td> PKR 12,471 mn<\/td> PKR 9,952 mn<\/td><\/tr> Earnings Per Share (EPS)<\/strong><\/td> PK10.9<\/td> PKR 8.7<\/td><\/tr> Dividend Per Share (DPS)<\/strong><\/td> PKR 4.0<\/td> PKR 2.5<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n