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 Rs8.31 billion compared to Rs8.48 billion 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 a dividend of Rs4 per share.
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Profit After Taxation | Rs8.31bn | Rs8.48bn | -2% |
| EPS | Rs7.26 | Rs7.40 | -2% |
| Dividend | Rs4/share | – | – |
| Net Mark-up Income | Rs27.83bn | Rs25.40bn | +10% |
| Total Income | Rs35.48bn | Rs33.25bn | +7% |
Core Lending Performance
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 Rs83.72 billion. However, mark-up/interest expensed rose at a faster pace of 21%, reaching Rs55.89 billion. Despite this, net mark-up/interest income expanded by a solid 10% year-on-year to Rs27.83 billion from Rs25.40 billion.
Non-Markup Income Performance
On the non-funded side, total non-mark-up/interest income fell by 3% to Rs7.65 billion. This decline was largely driven by a net loss on securities amounting to Rs215.94 million (a sharp reversal from a Rs744.83 million gain last year) and a 27% drop in foreign exchange income (Rs1.27 billion).
| Non-Markup Component | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Net (Loss)/Gain on Securities | (Rs215.94m) | Rs744.83m | -129% |
| Foreign Exchange Income | Rs1.27bn | Rs1.74bn | -27% |
| Dividend Income | Rs1.21bn | Rs850.11m | +43% |
| Fee & Commission Income | Rs4.84bn | Rs4.43bn | +9% |
| Other Income | Rs542.49m | Rs85.65m | +533% |
These losses overshadowed strong performances in other non-core areas, such as a 43% jump in dividend income (Rs1.21 billion) , a surge in other income (Rs542.49 million), and a 9% increase in fee and commission income (Rs4.84 billion). Overall, total income still managed to grow by 7% to Rs35.48 billion.
Expense and Credit Loss
Operating overheads escalated alongside inflation, with total non-mark-up expenses rising 10% to Rs17.43 billion. The bank recorded a credit loss allowance and write-offs of Rs1.05 billion, compared to a reversal of Rs134.79 million in Q1 2025, representing a significant increase in provisioning.
Profit and Taxation
Profit before taxation was down by 4% to Rs16.95 billion. However, a 6% lower taxation expense of Rs8.64 billion helped cushion the blow, allowing the bank to contain its final net profit decline to just 2% for the quarter.
About Allied Bank Limited
Allied Bank Limited (PSX: ABL) is one of Pakistan’s largest commercial banks, offering a comprehensive range of banking products and services to retail, corporate, and institutional clients. With a nationwide network of branches and a strong focus on digital transformation, the bank is committed to delivering sustainable value to its stakeholders.
