Corporate results: Allied Bank profits grow 24% in 2011

On a quarterly basis, Allied Bank profits dropped 9% to Rs2.46 billion during Oct to December 2011.


Our Correspondent February 14, 2012

KARACHI: Allied Bank posted strong earnings growth of 24% in 2011 primarily due to growing net interest income and shrinking bad loans.

Net profit stood at Rs10.26 billion in 2011 against Rs8.23 billion posted a year ago, according to unconsolidated results sent to the Karachi Stock Exchange on Tuesday

The result was in line with market expectation as analysts were spot on with their net profit estimate. A final cash dividend of Rs2.5 per share was also announced, taking the full-year payout to Rs5 per ordinary share of Rs10.

ABL also announced a 10% stock bonus to meet State Bank of Pakistan’s minimum capital requirement of Rs9 billion in 2012, said Burj Capital analyst Umer Pervez. Of the big five banks, MCB Bank and Allied barely met the capital requirement in 2011.

Net interest income grew by 11% growth to Rs22.16 billion on the back of relatively higher lending yields in the period under review, added Pervez. ABL’s investment portfolio is skewed 70% towards government securities.

Provisions against bad loans declined by 26% to Rs2.7 billion in 2011 against Rs3.07 billion posted in the same period a year ago.

The bank’s stock price rose Rs0.39 to close at Rs61.02 during trade at the Karachi Stock Exchange  on Tuesday.

On a quarterly basis, Allied Bank posted an earnings decline of 9% to Rs2,463 million in the fourth quarter (October to December) of 2011 against Rs2.72 billion posted in the preceding quarter.

The decline is attributable to a four-fold jump in loan provisions to Rs1.3 billion even as dividend income surprised by doubling to Rs1.4 billion.

Askari Bank beats estimates

Askari Bank’s net profit grew a stellar 73% to Rs1.63 billion in 2011 against the preceding year’s Rs0.94 billion, much higher than market expectation.

The result was 34% higher than estimates as analyst projected net profit of Rs1.06 billion.

Alongside the result, Askari Bank announced a 15% bonus issue.

Army Welfare Trust (AWT) – 50.57% shareholder in Askari Bank – has announced that Fauji Foundation is interested for acquisition of the entire or partial stake of AWT.

Published in The Express Tribune, February 15th, 2012.

COMMENTS (1)

A.Khan | 12 years ago | Reply

that is a good news...I hope those companies will appoint more employees to support the country's economy.

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ