Allied Bank’s Half Year profit decline by 13% to Rs. 6.2 billion

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Allied Bank’s Half Year profit decline by 13% to Rs. 6.2 billion

Summary

  • 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
Interest Earned 52,011 33,319 56%
Interest Expensed 33,279 17,507 90%
Net Interest Income 18,732 15,812 18%
Non-Interest Income 5,697 6,888 -17%
Non-Mark-up Expenses 13,433 11,765 14%
Pre-Provision Profit 10,995 10,935 0.6%
Net Provisions -289 -1,009 n.a
Profit Before Tax 11,284 11,944 -5%
Tax 5,042 4,698 7%
Profit After Tax 6,242 7,245 -13.8%
EPS (Rs.) 5.45 6.33
DPS (Rs.) 4 4

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