Faisalabad May 5 2022: Deposits of the Allied Bank Limited (ABL), with a growth of 0.3%, stood at Rs. 1,417,499 million as on March 31, 2022. Bank’s Current deposit increased by 7% thereby increasing current deposit to Total deposit mix to 46% as on March 31, 2022 as compared to 43% as on December 31, 2021. Current and Saving Account (CASA) deposit mix stood at 81% as on March 31, 2022.
Amid evolving interest rate risk, investment portfolio duration was optimized during the quarter ended March 31, 2022. Total investments closed at Rs. 1,057,977 million as on March 31, 2022. The liquidity was primarily placed in Government securities; increasing the PIB contribution to the total investment mix to 70% as at march 31, 2022 compared to 51% as at December 31, 2021. Return on Assets, Return on Equity and Capital Adequacy Ratio of the Bank stood at 1.0%, 17.9% and 22.38% respectively.
The positive volumetric growth in average earning assets along with positive rate variance assisted in 64% increase in mark-up income to reach at Rs. 39,062 million during the quarter ended March 31, 2022. Interest expense registered a growth of 104% to record at Rs. 26,521 million during the captioned period. Increase is attributable to high cost of deposit amid rising interest rate scenario.
Despite timing difference between repricing of earning assets and remunerable liabilities under rising interest rate scenario, Bank’s net interest income (NII) increased by 16%. NII stood at Rs. 12,542 million during quarter ended March 31, 2022 as against Rs. 10,794 million during corresponding period last year.
Fee income has increased to Rs. 2,097 million and registered a growth of 29% for the period under review. Active management of foreign currency exposure coupled with favorable SWAP curve has resulted in a sizeable increase in income from dealing in foreign currencies by 206% during the quarter ended March 31, 2022, which amounted to Rs. 752 million.
Dividend income increased by 86% to Rs. 935 million during the quarter ended March 31, 2022 as against Rs. 504 million during corresponding period last year. Consequently, non-markup income recorded at Rs. 4,080 million during quarter ended March 31, 2022 as against Rs. 3,830 million during the corresponding period last year; registering a growth of 7%.
Despite increased inflation and continued investment towards technological transformation to cater the evolving needs of “Digital Age”, operating expense increase curtailed to 9% during quarter ended March 31, 2022 as against an increase of 11% during last year. Total non-markup expenses aggregated to Rs. 8,863 million during quarter ended March 31, 2022 as compared to Rs. 8,064 million during corresponding period last year.
Bank thrives towards a hybrid expansion strategy involving combination of digital and “brick and mortar” banking operations, together with bringing more focus towards e-banking. The Bank has a large ATM network of 1,567 machines comprising of 1,288 on-site, 274 off-site and 05 Mobile Banking Units (MBU). Branch outreach closed at 1,429 including 1,305 conventional branches, 117 Islamic banking branches and 07 digital branches.
Bank posted profit before tax of Rs. 8,011 million during the quarter ended March 31, 2022 as compared to Rs. 6,699 million during the corresponding period last year; registering a growth of 20%. Profit after tax for the quarter ended March 31, 2022 recorded at 4,828 million, increasing by 20%. Consequently, Earnings per share (EPS) of Bank stood at Rs. 4.22 during the quarter ended March 31, 2022 as against Rs. 3.52 during corresponding period last year.
Total assets of the Bank decreased by 3% to record at Rs. 1,958,844 million as on March 31, 2022. Decrease is attributable to contraction of 47%, 4% and 1% in Lending to financial institution, Net advances and Investments respectively.
Net assets of Bank increased by 3% to record at Rs. 128,930 million as on March 31, 2022 as against Rs. 127,245 million as on December 31, 2021.
Persistent effective monitoring enabled Bank to further reduce gross non-performing advances portfolio by Rs. 104 million to reach at Rs. 13,497 million as on March 31, 2022. Gross advances and net advances reached at Rs. 638,147 million and 625,508 million respectively. Bank continued its momentum towards low infection ratio and high overall coverage ratio which stood at 2.12% and 93.65% respectively. No FSV benefit was availed while determining the provision against non-performing loans, allowed under guidelines of SBP.
