October 23, 2025 (MLN): Allied Bank Limited (PSX: ABL) has reported its financial results for the nine months ended September 30, 2025, posting a profit after tax (PAT) of Rs26.81 billion, marking a 26.54% decline from Rs36.49 billion recorded in the same period last year (SPLY).

The earnings per share (EPS) stood at Rs23.41, down from Rs31.87 in SPLY, reflecting the decline in profitability.

Despite lower earnings, the Board of Directors declared a third interim cash dividend of Rs4.00 per share (40%) for the quarter ended September 30, 2025.

This brings the cumulative payout for the nine months to 120% (Rs12.00 per share), including two interim dividends of 40% each already paid in earlier quarters.

The bank’s mark-up/return/interest earned dropped 23.85% to Rs221.83bn from Rs291.32bn, mainly showing lower yields amid a declining interest rate environment.

Meanwhile, mark-up/return/interest expensed also fell 28.81% to Rs143.15bn from Rs201.07bn, resulting in a net mark-up income of Rs78.68bn, down 12.82% year-on-year.

On the non-mark-up side, total non-mark-up/interest income rose 7.98% to Rs23.17bn from Rs21.46bn, showing resilience in fee-based revenues.

Fee and commission income climbed 19.77% to Rs13.79bn, supported by improved digital banking and card-based transactions.

However, dividend income and foreign exchange income declined 15.29% and 18.73%, respectively, to Rs1.93bn and Rs4.43bn.

In contrast, gain on securities surged 88.49% to Rs2.55bn, showing favorable investment revaluations, while other income dropped sharply by 45.43% to Rs470.26m.

Consequently, total income amounted to Rs101.85bn, showing an 8.82% decline compared to Rs111.70bn last year.

Operating expenses increased significantly by 16.00% to Rs49.05bn, mainly due to inflationary cost pressures, technology investments, and network expansion.

Workers’ welfare fund declined 21.03% to Rs1.13bn, while other charges grew 35.31% to Rs299.55m.

Overall, total non-mark-up/interest expenses rose 14.89% to Rs50.47bn from Rs43.93bn, tightening operating margins.

The bank’s profit before credit loss allowance fell 23.98% to Rs51.92bn from Rs68.30bn last year.

Meanwhile, credit loss allowance and write-offs jumped 45.12% to Rs4.30bn, signaling higher provisioning in anticipation of potential stress in the loan book.

After provisions, profit before taxation (PBT) stood at Rs56.22bn, down 21.11% from Rs71.26bn in SPLY.

Taxation expense decreased 15.40% to Rs29.41bn, showing in a profit after taxation of Rs26.81bn, marking a 26.55% decline from Rs36.49bn recorded last year.