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HomeBusinessAllied Bank Achieves Remarkable 158% Profit Surge in H1 2023

Allied Bank Achieves Remarkable 158% Profit Surge in H1 2023

Allied Bank Limited (PSX: ABL) has made a resounding statement in the financial world with its spectacular performance in the first half of 2023. The bank reported an extraordinary growth in profits, showing a remarkable surge of 158 percent compared to the same period last year. This outstanding accomplishment underscores the bank’s strong strategic direction and effective management, positioning it as a force to be reckoned with in the industry.

According to the recently released financial results, Allied Bank’s profit for the first half of 2023 soared to Rs. 17.6 billion, a significant leap from the Rs. 6.8 billion reported during the same time frame in the previous year. Notably, the second quarter (Q2) proved to be even more astonishing, with the bank’s profit after tax (PAT) skyrocketing by an astounding 404 percent year-on-year, reaching Rs. 9.9 billion.

The bank’s proactive approach to enhancing its net interest income (NII) also paid off handsomely. In the first half of 2023, the NII surged to Rs. 50.6 billion, marking an impressive 84 percent increase from the previous year’s Rs. 27.5 billion. This dynamic growth is a testament to the bank’s ability to seize strategic opportunities and optimize its operations.

Moreover, Allied Bank’s non-markup income saw a commendable rise to Rs. 12.18 billion in the first half of the year, up from Rs. 10.98 billion in the corresponding period last year. This diversified income stream further illustrates the bank’s efforts to strengthen its financial foundation and explore new avenues of growth.

Arif Habib Limited, a reputable financial advisory firm, highlighted that the bank’s overall profitability was also fueled by an 11 percent year-on-year surge in non-funded income (NFI), reaching Rs. 12.2 billion. This increase was mainly attributed to heightened fee and commission income, which saw a substantial 30 percent year-on-year growth due to improved trade-related activities.

However, in the landscape of financial success, challenges and adjustments are inevitable. During the second quarter of 2023, the bank allocated a provisioning amount of Rs. 434 million, compared to a provisioning reversal of Rs. 497 million in the same period the previous year. This responsible approach to risk management demonstrates the bank’s commitment to maintaining a robust financial position.

As part of its commitment to shareholders, Allied Bank’s board of directors announced a dividend of Rs. 2.5 per share, reflecting their confidence in the bank’s current and future performance.

In summary, Allied Bank’s exceptional profit surge of 158 percent in the first half of 2023, combined with its impressive performance in Q2, paints a picture of a financial institution that is not only resilient but thriving. The bank’s strategic initiatives, growth in NII, and diversified income streams all contribute to its upward trajectory. As the financial landscape continues to evolve, Allied Bank’s proactive approach and prudent financial management position it as a beacon of success in the banking sector.

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