Business Recorder
KARACHI: Allied Bank’s strategic emphasis on sound risk management, balanced portfolio diversification, and prudent capital allocation is strengthening its resilience. Coupled with a strong focus on digitalization and operational efficiency, this approach is enhancing customer value and sustainable growth. The Bank recorded markup up/interest income of Rs. 83,699 million for the quarter ended March 31, 2026, compared to Rs. 71,647 million during the same period last year, reflecting an increase of 17 percent. This increase primarily stems on account of higher average volumes of mark-up bearing assets. Conversely, markup or interest expense of the Bank has increased by Rs. 9,613 million or 21 percent to reach Rs. 55,895 million for the quarter ended March 31, 2026 as compared to Rs. 46,283 million for the quarter ended March 31, 2025.This increase is on account of higher borrowing expense and interest expense on right of use asset, partially offset by lower deposit cost. Resultantly, Net markup and interest income reached at Rs. 27,804 million during the quarter ended March 31, 2026 as compared to Rs. 25,364 million during the same period last year, increasing by Rs. 2,440 million or 9 percent. Fee income stood at Rs. 4,251 million for the quarter ended March 31, 2026, compared to Rs. 3,723 million for the corresponding quarter last year; registering increase of Rs. 528 million or 14%, mainly on account of higher card related fee, card acquiring business, investment banking fee, partially offset by lower commission on remittances. Dividend income of the Bank stood at Rs. 1,212 million for the quarter ended March 31, 2026 as compared to Rs. 850 million for the quarter ended March 31, 2025, increased by 43%. Due to unrealized loss on fair value through profit and loss securities, capital loss of the Bank for the quarter under review was Rs. 216 million compared to a capital gain of Rs. 745 million for the quarter ended March 31, 2025. Foreign Exchange income of ABL stood at Rs. 1,259 million for the quarter ended March 31, 2026, against Rs. 1,728 million for the quarter ended March 31, 2025. The Bank’s other income amounted to Rs. 561 million in first quarter of 2026, compared to Rs. 102 million in first quarter of 2025. Cumulatively, non-markup or non-interest income of the Bank stood at Rs. 7,067 million for the quarter ended March 31, 2026, reflecting a 1% decline from Rs. 7,148 million in the corresponding quarter previous year. Allied Bank’s ongoing expansion of its branch network, coupled with continued investment in technological capabilities, contributed to an increase in total operating expenses during the quarter. However, through effective deployment of technology, process automation, and operational efficiencies, the Bank limited the growth in operating expenses to 11%. Total operating expenses amounted to Rs. 16,957 million for the quarter ended March 31, 2026, compared to Rs. 15,333 million for the quarter ended March 31, 2025. For the quarter ending March 31, 2026, profit before taxation stood at Rs. 16,867 million, reflecting a 3% decrease from Rs. 17,315 million in the corresponding quarter ended March 31, 2025. The effective income tax rate for the quarter ended March 31, 2026, was 51.03%, compared to 52.70% for the quarter ended March 31st, 2025. The tax charge for first quarter of 2026 stood at Rs. 8,607 million, lower than Rs. 9,125 million in first quarter of 2025, reflecting a 6 percent decrease. The Bank’s profit after tax for the quarter ended March 31, 2026, stood at Rs. 8,261 million, compared to Rs. 8,190 million in the corresponding quarter of 2025, higher by 1%. The Bank’s wide-reaching branch network across the country remains a key strategic strength and has been further enhanced through the expansion of digital and smart branches, along with the refurbishment of existing locations to elevate the overall customer experience. The Bank now operates a total of 1,524 branches, comprising 1,204 conventional branches, 299 Islamic branches and 21 digital branches. This outreach is further strengthened by a well-distributed network of 1,699 Automated Teller Machines (ATMs), comprising 1,447 on-site ATMs, 244 off-site ATMs and 8 Mobile Banking Units (MBUs), complemented by 471 Cash Deposit Machines (CDMs). Gross advances of the Bank were recorded at Rs. 717 billion as of March 31, 2026, compared to Rs. 802 billion as of December 31, 2025. Similarly, Net advances of ABL were Rs. 704 billion as of March 31, 2026, compared to Rs. 790billion as of December 31, 2025; thereby, declining by 11%. Allied Bank continues to maintain a consistently low infection ratio, reflecting the strong asset quality and resilience of its credit portfolio. As of March 31, 2026, the Bank’s infection ratio stood at 1.72%, as compared to 1.42% for the year ended December 31, 2025. The overall coverage ratio was recorded at 105.2% as of March 31, 2026, compared to 109.1% as of December 31, 2025. Bank’s total investments stood at Rs. 2,505 billion as of March 31, 2026, compared to Rs. 2,137 billion as of December 31, 2025, depicting a growth of 17%.Total deposits were Rs. 2,377billion as of March 31, 2026, compared to Rs. 2,346billion as of December 31, 2025, reflecting a growth of 1 percent. Allied Bank recorded strong growth with total assets rose to Rs. 3,685 billion as of March 31, 2026, up by 9 percent from Rs. 3,370 billion at the end of December 2025.The Bank’s net assets decreased by 8 percent mainly on account of revaluation deficit on Federal Government securities, reaching Rs. 243 billion as of March 31, 2026, compared to Rs. 263 billion in 2025. The Return on Assets (ROA) and Return on Equity (ROE) Tier 1 of the Bank recorded at 0.9 percent and 16.7 percent, respectively, as of March 31, 2026. The Capital Adequacy Ratio (CAR) stood at 23.82 percent as of March 31, 2026, remaining well above the minimum regularity threshold of 11.5 percent. Copyright Business Recorder, 2026
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