Allied Bank posted a profit of Rs 3.77 billion in the first quarter of 2018, which is up 4.72% from Rs 3.60 billion in the same three-month period last year.
Earnings per share of the company increased to Rs 3.29 from Rs 3.15.
Along with the result, ABL has announced Rs 2/share as a dividend, which is higher than its payout history and market expectation of Rs 1.75/share.
On a quarter on quarter basis, the Bank’s Net Interest Income remained flat, with a marked reduction in interest income and interest expenses, attributable to PIB maturities in Mar’18, and declining fund cost over deposits and lower leverage.
NMI was up 32%QoQ on account of a significant boost from capital gains contributing Rs 0.76 in post-tax earnings to offset a flat topline.
Meanwhile, the Bank performed exceptionally in curbing operating cost by 18%QoQ and mobilizing robust recoveries on the advances front, which also supported the bottom-line.
The Bank has also booked a charge of Rs 265 million which is to be believed as the account of revision to its pension obligation and a one-off expense, dealing a Rs 0.23 per share blow to pre-tax earnings.
Markup Earned was worth Rs 15.67 billion. Furthermore, the company’s net markup after provisions during the outgoing three months rose by 1.75% to reach Rs 1.15 billion.
Dividend Income went up by 30.40% and Income from foreign currencies jumped by 60.63% during the reported period. On the expenses front, total non-markup expenses during the quarter rose by 12.92 percent to clock in at Rs 5.537 billion.
ABL’s script at the bourse was trading at Rs 101.02, up by 0.82% with a turnover of 944,000 shares.