KARACHI: Allied Bank has posted after-tax profit of Rs8.3 billion for the first nine months of 2013, which is down 11% from the Rs9.4 billion profit the bank made in the corresponding period last year, according to a notice sent to the Karachi Stock Exchange (KSE) on Tuesday.
The company has also declared a third interim cash dividend at the rate of 12.5%, or Rs1.25 per share, for the year ending December 31, 2013.
Earnings per share remained at Rs8 for the nine-month period compared to estimated Rs7.54 because of increased interest income amid improvement in net interest margins, according to Alternate Research analyst Umesh Kumar.
Interest income increased 8% year-on-year to Rs40.1 billion against Rs37 billion in the corresponding period last year mainly on the back of projected increase in advances for the bank by 4%.
Similarly, net interest margin of the bank increased 191 basis points to 40.81% compared to 38.9% in the first nine months of 2012. “This is likely on the back of upsurge in advances to deposit ratio (ADR) for the bank,” he added.
Provisions against loans and advances declined by a massive 73% year-on-year between January and September, as they clocked in at Rs374 million. In contrast, they amounted to Rs1.4 billion in the same period last year.
Non-interest income fell by 32% year-on-year, which eroded the bank’s earnings in the nine-month period. Also, dividend income of the bank plummeted 61.5% from Rs6.2 billion to Rs2.3 billion over the nine-month period.
Published in The Express Tribune, October 23rd, 2013.
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