Allied Bank records a staggering 95% profit surge, signaling robust financial growth for 2023.
Story Snapshots:
- Allied Bank (ABL) posts a 95% increase in profit-after-tax for 2023.
- Earnings per share have nearly doubled compared to the previous year.
- A final cash dividend of Rs4 per share has been announced.
- Net interest income surged by over 69% due to higher interest rates.
- Fee and commission income, as well as foreign exchange income, saw significant jumps.
- Non-interest expenses and tax payments also saw substantial increases.
What growth did Allied Bank report in its 2023 financial results? Allied Bank (ABL) announced a 95% growth in profit-after-tax, reaching Rs41.3 billion, with a notable increase in earnings per share, net interest income, and commission income according to its consolidated financial results.
Navigating through the fiscal tides, Allied Bank Limited (ABL) has announced a remarkable growth in profit-after-tax for the year 2023, hitting a high of nearly 95% compared to the earnings in the preceding year. This surge in profitability reflects a decisive upward trajectory in the bank’s financial performance.
The bank’s consolidated financial results revealed an impressive earnings per share of Rs36.07, a sharp increase from Rs18.56 reported in 2022. This significant rise denotes a period of robust earnings and heightened shareholder returns. In tandem with these results, the board of directors declared a final cash dividend of Rs4 per share, which comes in addition to the interim dividend that had already paid out at Rs8 per share.
ABL’s financial health is further evidenced by a substantial 69% increase in net interest income, rising to Rs112.9 billion in 2023 from Rs66.7 billion in the same period last year (SPLY). This growth in net interest income can largely be attributed to the escalated interest rates, which peaked at 21% over the course of the year.
Read: Asian Stocks Edge Up, Dollar Holds Steady Before US Inflation Data
The bank also experienced a healthy uptick in fee and commission income, jumping 32% year-over-year to Rs11.84 billion. Additionally, Allied Bank’s income from foreign exchanges accelerated by 15%, reaching a commendable Rs9.17 billion. These figures contributed to a 19% annual increase in the bank’s non-markup income, which stood at Rs25.59 billion for 2023.
Despite these gains, the bank also faced a rise in its non-interest expenses, which swelled to Rs49.7 billion in 2023, up from Rs41.6 billion the prior year. The tax burden for ABL showed a similar trend, with the bank remitting a hefty Rs45.5 billion in taxes—78% more than the Rs25.5 billion paid in 2022.
ABL’s financial results not only demonstrate a solid performance for the year but also reflect the broader resilience and growth
What’s your take on this? Let’s know about your thoughts in the comments below!
