April 23, 2021 (MLN): Allied Bank Limited announced its financial results yesterday for the 1QCY21where it reported net profits of Rs4.11billion (EPS: Rs3.59), exhibiting a 5.7% jump compared to the net profits of Rs3.9bn (EPS: Rs3.40) in the corresponding period last year.
The other major highlight from the results includes a 71.1% increase in capital gains which supported the bank’s non-funded income (NFI). Likewise, foreign exchange income observed a turnaround and clocked in at a 245.9million. The improvement in foreign exchange income was mainly due to the restoration of foreign exchange operations after easing in lockdown amid the pandemic.
The bank’s fee and commission income also improved the overall profitability, as it clocked in at Rs 1.8bn against Rs1.7bn recorded during 3MCY20. According to Intermarket Securities, the increase in fee and commission income is likely due to recovering trade commissions.
During the period under review, the bank’s net interest income (NII) shrunk by 7.71% YoY to Rs10.8bn compared to the NII of Rs11.7bn in the same period of the previous year.
Further, ABL has booked provisioning reversal of Rs139mn during 3MCY21 compared to the provisions of Rs680mn corresponding to the same period of CY21 which provided a boost to the Bank’s earnings.
On the expenses front, the bank’s non-markup expenses surged by 10.81% YoY to Rs8.2bn.
On a YoY basis, operating expenses of ABL increased by 11.16% to Rs8bn while other charges declined by 12.8% YoY and worker’s welfare fund remained flat, as a result, Bank’s cost to income ratio improved to 45% compared to 49% in SPLY.
Furthermore, the bank witnessed a marginal increase in the effective tax rate from 39% to 40% in 1QFY21. Meanwhile, ABL also announced an interim Cash Dividend of Rs2 per share for the quarter under review.
|
Consolidated Profit and Loss Account for the quarter ended March 31, 2021 (Rupees in '000) |
|||
|---|---|---|---|
|
|
Mar-21 |
Mar-20 |
% Change |
|
Mark-up/return/interest earned |
23,774,192 |
32,071,244 |
-25.87% |
|
Mark-up/return/interest expensed |
12,981,181 |
20,376,453 |
-36.29% |
|
Net mark-up/interest income |
10,793,011 |
11,694,791 |
-7.71% |
|
NON MARK-UP/INTEREST INCOME |
|
|
|
|
Fee, commission income |
1,815,152 |
1,718,614 |
5.62% |
|
Dividend income |
514,386 |
387,673 |
32.69% |
|
Foreign exchange income |
245,859 |
(188,408) |
-230.49% |
|
Gain on sale of securities – net |
1,487,764 |
869,469 |
71.11% |
|
Other income |
4,704 |
14,076 |
-66.58% |
|
Total non mark-up/interest income |
4,067,865 |
2,801,424 |
45.21% |
|
Total Income |
14,860,876 |
14,496,215 |
2.52% |
|
NON MARK-UP/INTEREST EXPENSES |
|
|
|
|
Operating expenses |
8,000,219 |
7,197,325 |
11.16% |
|
Workers welfare fund |
145,463 |
144,313 |
0.80% |
|
Other charges |
39,574 |
45,394 |
-12.82% |
|
Total non mark-up/interest expenses |
8,185,256 |
7,387,032 |
10.81% |
|
Profit before provisions |
6,675,620 |
7,109,183 |
-6.10% |
|
Provisions / (reversals) and write offs – net |
(139,001) |
680,931 |
-120.41% |
|
Profit before taxation |
6,814,621 |
6,428,252 |
6.01% |
|
Taxation |
2,702,742 |
2,538,031 |
6.49% |
|
Profit after taxation |
4,111,879 |
3,890,221 |
5.70% |
|
Earnings per share – Basic and Diluted (in Rupees) |
3.59 |
3.40 |
5.59% |
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