Allied Bank Reports Highest Ever Profit in a Year

Allied Bank Limited (ABL) recorded an all-time high profit of Rs. 18 billion in 2020 with a year-on-year growth of 27.7 percent compared to Rs. 14.11 billion in 2019.

ABL had had its highest-ever profitability of Rs. 15.12 billion in 2015 but had been unable to sustain its profit growth owing to various operational challenges and a low-interest rate regime in the following years.

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Despite a reduction in the policy rate, the bank has made an interest income of Rs. 48.4 billion this year with increased financing to its corporate and other clients. It also earned handsomely from non-interest avenues that stood at Rs. 12.5 billion for the year.

The bank’s management plans to adopt a hybrid expansion strategy involving digital and brick-and-mortar banking operations while focusing more on e-banking.

Additionally, a transaction mix of its digital and counter-based services improved from 46:54 as of 31 December 2019 to 57:43 as of 30 September 2020.

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ABL is operating across Pakistan with more than 1,385 branches, including 1,262 conventional branches, 117 Islamic banking branches, and six digital branches. Its ATM network has also expanded to 1,552, comprising of 1,210 on-site, 339 off-site, and three Mobile Banking Units (MBUs).

The bank’s assets and deposits have surged to over Rs. 1.5 trillion, and its earnings per share surged to Rs. 15.75 from Rs. 12.32. Its board has also announced a dividend of Rs. 6 per share. This is an addition to interim dividends already paid at Rs. 2.