Allied Bank continues to strengthen its competitive position through prudent risk management, strategic capital allocation, and diversification across investment and lending portfolios. The bank’s steadfast commitment to operational excellence and digital transformation has not only elevated the customer experience but also reinforced the foundation for sustainable, long-term growth.
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Financial Performance Overview
For the year ended December 31, 2025, Allied Bank reported profit after tax of Rs35.18 billion, compared to Rs43.12 billion in 2024. The bank declared a dividend of Rs16.00 per share for the year.
Net markup and interest income stood at Rs105.00 billion, compared to Rs115.22 billion in the previous year, reflecting a 9% decrease. This decline primarily stems from a lower average policy rate of 11.39% in 2025, compared to 19.67% in 2024.
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Profit After Tax | Rs35.18bn | Rs43.12bn | -18% |
| Net Markup/Interest Income | Rs105.00bn | Rs115.22bn | -9% |
| Markup/Interest Income | Rs297.23bn | Rs376.76bn | -21% |
| Markup/Interest Expense | Rs192.23bn | Rs261.54bn | -27% |
| Dividend | Rs16.00/share | – | – |
Non-Markup Income Performance
Fee income registered a 17% increase, reaching Rs16.52 billion from Rs14.08 billion in 2024, driven by higher card-related fees, card acquiring business, investment banking fees, and branch banking customer fees.
Non-markup or non-interest income stood at Rs28.56 billion, reflecting a 2% growth from Rs27.98 billion in the previous year. Key components included:
- Dividend Income: Rs2.90 billion (4% lower)
- Capital Gain: Rs2.92 billion (15% lower)
- Foreign Exchange Income: Rs5.15 billion (23% lower)
- Other Income: Rs1.07 billion (42% higher)
Operating Expenses and Efficiency
Allied Bank’s continued focus on expanding its branch network and strengthening technological capabilities led to an increase in total operating expenses. However, through effective use of technology, process automation, and operational improvements, the bank successfully contained growth to 16%. Total operating expenses amounted to Rs66.99 billion, compared to Rs57.99 billion in 2024.
Taxation and Profitability
Profit before taxation stood at Rs74.21 billion, reflecting a 16% decrease from Rs87.93 billion in 2024. The effective income tax rate for the year was 52.60%, compared to 50.96% in the previous year. The tax charge stood at Rs39.03 billion, lower than Rs44.81 billion in 2024.
Balance Sheet Strength
Allied Bank achieved a significant milestone by surpassing an asset base of Rs3 trillion. Total assets stood at Rs3.37 trillion, reflecting robust growth of 20% from Rs2.82 trillion at the end of 2024. Net assets increased by 13%, reaching Rs263.38 billion.
| Balance Sheet Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total Assets | Rs3,370bn | Rs2,817bn | +20% |
| Net Assets | Rs263.4bn | Rs233.9bn | +13% |
| Total Deposits | Rs2,345.9bn | Rs2,018.4bn | +16% |
| Current Account Deposits | – | – | +21% |
| Gross Advances | Rs802.1bn | Rs1,066.3bn | -25% |
| Net Advances | Rs789.7bn | Rs1,051.3bn | -25% |
| Total Investments | Rs2,137.1bn | Rs1,129.9bn | +89% |
Deposit Growth and Advances
Total deposits grew by 16% to Rs2,345.9 billion, with current account deposits registering even stronger growth of 21%, reflecting the bank’s continued focus on enhancing low-cost or no-cost deposits.
Gross advances stood at Rs802.1 billion, compared to Rs1,066.3 billion in 2024, reflecting a 25% decline. Net advances similarly decreased by 25% to Rs789.7 billion.
Asset Quality
Allied Bank continues to maintain a consistently low infection ratio, reflecting the strong quality and resilience of its credit portfolio. Key asset quality metrics include:
- Infection Ratio: 1.42% (2025) vs 1.22% (2024)
- Coverage Ratio: 109.1% (2025) vs 115.7% (2024)
Investment Portfolio
Total investments stood at Rs2,137.1 billion, depicting a robust growth of 89% from Rs1,129.9 billion in 2024. This significant increase reflects the bank’s strategic capital allocation toward investment securities amid changing interest rate dynamics.
Capital Adequacy and Profitability Ratios
| Ratio | 2025 | 2024 |
|---|---|---|
| Return on Assets (ROA) | 1.1% | 1.7% |
| Return on Equity (ROE) | 18.7% | 26.0% |
| Capital Adequacy Ratio (CAR) | 27.74% | 26.71% |
The Capital Adequacy Ratio (CAR) stood at 27.74%, up from 26.71% in 2024, remaining well above the minimum regulatory threshold of 11.5%.
About Allied Bank
Allied Bank 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.
