April 21, 2026 (MLN): Allied Bank Limited (PSX: ABL) reported a slight 2% dip in its consolidated profit after taxation for the first quarter ended March 31, 2026, recording Rs8.31bn compared to Rs8.48bn in the corresponding period last year.

Consequently, the bank's basic and diluted earnings per share (EPS) edged down to Rs7.26 from Rs7.40 in Q1 2025.

The bank also declared dividend at Rs4 per share.

ABL's core lending operations demonstrated healthy growth, though the cost of funding remained high.

The bank’s mark-up/interest earned grew by 17% to Rs83.72bn. However, mark-up/interest expensed rose at a faster pace of 21%, reaching Rs55.89bn.

Despite this, net mark-up/interest income expanded by a solid 10% year-on-year to Rs27.83bn from Rs25.40bn.

On the non-funded side, total non-mark-up/interest income fell by 3% to Rs7.65bn.

This decline was largely driven by a net loss on securities amounting to Rs215.94m (a sharp reversal from a Rs744.83m gain last year) and a 27% drop in foreign exchange income (Rs1.27bn).

These losses overshadowed strong performances in other non-core areas, such as a 43% jump in dividend income (Rs1.21bn), a  surge in other income (Rs542.49m), and a 9% increase in fee and commission income (Rs4.84bn).

Overall, total income still managed to grow by 7% to Rs35.48bn.

Operating overheads escalated alongside inflation, with total non-mark-up expenses rising 10% to Rs17.43bn.

Profit before taxation was down by 4% to Rs16.95bn. However, a 6% lower taxation expense of Rs8.64bn helped cushion the blow, allowing the bank to contain its final net profit decline to just 2% for the quarter.