Allied Bank Limited (ABL) has announced its highest-ever quarterly profit after tax (PAT) for the second quarter of the calendar year 2024 (2QCY24), reaching RS. 12.5 billion.

This represents a significant increase of 25% year-on-year (YoY) and 7% quarter-on-quarter (QoQ). The bank’s earnings per share (EPS) for the quarter stood at Rs. 10.9.

For the first half of the calendar year 2024 (1HCY24), ABL’s total profits amounted to Rs. 24.1 billion, marking a 37% YoY increase.

According to Arif Habib Ltd, the growth was driven by a rise in total income and significant provisioning reversals. The bank declared a cash dividend of Rs. 4 per share for 2QCY24, bringing the total payout for 1HCY24 to Rs. 8 per share.

Despite a 3% YoY decline in Net Interest Income (NII) to Rs. 29.4 billion for 2QCY24, the bank saw a slight QoQ increase of 1%. Interest expenses rose by 6% YoY and 5% QoQ, while interest income increased by 3% YoY and 4% QoQ.

Non-Funded Income (NFI) surged by 59% YoY during 2QCY24, totaling Rs. 14.2 billion for 1HCY24, a 21% YoY increase. This was largely due to a gain of PKR 838 million from the sale of securities, up from Rs. 211 million in the same period last year. Fee and commission income also rose by 33% YoY to Rs. 7.4 billion, although foreign exchange income declined by 7% YoY to Rs. 4.1 billion.

A significant provisioning reversal of Rs. 2.9 billion was recorded in the quarter, contributing to a total reversal of Rs. 3 billion for 1HCY24, compared to a provisioning charge of Rs. 2.7 billion in 1HCY23.

Operating expenses increased by 18% YoY in 1HCY24, reaching Rs. 28.9 billion, with a 19% YoY and 12% QoQ rise in 2QCY24. The cost-to-income ratio stood at 41.5% in 2QCY24, up from 36.7% in the same period last year. The effective tax rate was reduced to 49.3% during 2QCY24 from 54.6% in the previous year.