Allied Bank Limited (PSX: ABL) reported a massive profit growth of 158 percent year-on-year (YoY) in the first half of 2023 as compared to the profit reported in the same period last year.

According to the financial results, the bank’s profit surged to Rs. 17.6 billion during 1HCY23 compared to Rs. 6.8 billion in SPLY. In Q2, ABL’s PAT rose by 404 percent YoY to Rs. 9.9 billion. Along with the result, the bank’s board of directors announced a dividend of Rs. 2.5 per share.

The bank’s net interest income (NII) increased to Rs. 50.6 billion in 1HCY23 from Rs. 27.5 billion last year, showing an increase of 84 percent YoY. In Q2, the NII of the bank was recorded at Rs. 30.2 billion, an upsurge of 102 percent YoY.

Meanwhile, the bank’s foreign exchange income increased to Rs. 4.36 billion in 1HCY23, registering a meager growth of almost 1.5 percent compared to the previous year.

The non-markup income increased to Rs. 12.18 billion in H1 from Rs. 10.98 billion during the same period last year.

According to Arif Habib Limited, the overall profitability of ABL was also supported by an 11 percent YoY jump in NFI during 1HCY23, clocking in at Rs. 12.2 billion. The increase in NFI during 1HCY23 was mainly due to higher fee and commission income of Rs. 5.5 billion (30 percent YoY) due to improved trade-related activities.

Moreover, dividend income also increased by 24 percent YoY to Rs. 1.7 billion during 1HCY23. However, the bank witnessed a decline in gain on securities during 1HCY23 of Rs. 541 million, down by 47 percent YoY.

During 2QCY23, the bank booked provisioning of Rs. 434 million (2QCY22 provisioning reversal: Rs. 497 million). With this, the total provisioning charged during 1HCY23 stood at Rs. 2.7 billion.

The bank’s OPEX increased by 26 percent YoY in 2QCY23 clocking in at Rs. 12.8 billion. During 1HCY23, OPEX reached Rs. 24.5 billion (1HCY22: Rs. 19.2 billion, 28 percent YoY).

Source: Pro Pakistani