- Despite Increased Net Interest income, Banks Net profit Decline
- Rise in Admin Expenses and absence of Trading Income led to lower Profitability
Allied Bank Ltd announced its Half Year 2019 Financial Result where it posted Net Profit of Rs. 6.2 billion marking a 13.8% decline as compared to Rs. 7.2billion profit earned in the same period last year. The EPS stood at Rs.5.45 while Bank announced a dividend of Rs. 2/share taking half-year payout to Rs.4/share
On a quarterly basis, Net Interest Income (NII) witnessed a decline of 4.6% as compared to last quarter due to decline in Gross Yield diminishing to 33.1%, from 44% in the same quarter of last year. Moreover, the effective tax rate for 2QCY19 stood at 35% as compared to 51% tax rate charged in the first quarter of the year.
During the half-year period, the bank experienced a 14% increase in Administrative expenses which led to pressure on Profit After Tax.
|Rupees in Million||1HCY19||1HCY18||%Change|
|Net Interest Income||18,732||15,812||18%|
|Profit Before Tax||11,284||11,944||-5%|
|Profit After Tax||6,242||7,245||-13.8%|