KARACHI: Allied Bank continues to strengthen its capacity to navigate evolving market dynamics. Enhanced digital capabilities and operational excellence remain central to delivering superior customer experience and sustainable growth which are complimented by disciplined risk management practices, a diversified portfolio, and a strong capital base.
The Bank recorded markup/interest income of Rs. 171,499 million for the half year ended June 30, 2026, compared to Rs. 143,586 million for the half year ended June 30, 2025, reflecting an increase of 19%. This increase primarily stems on account of higher average volumes of mark-up bearing assets.The Bank declaredRs. 8.00 dividend for the half year ended June 30, 2026.
Conversely, markup or interest expense of the Bank has increased by Rs. 26,498 million or 29% to reach at Rs. 118,429 million for the half year ended June 30, 2026, compared to Rs. 91,932 million for the half year ended June 30, 2025. This increase is on account of higher borrowing expense, deposit cost and interest expense on right of use asset,
Resultantly, net markup and interest income reached at Rs. 53,069 million during the half year ended June 30, 2026 as compared to Rs. 51,654 million during the same period last year, increasing by Rs. 1,415 million or 3%.
Fee income stood at Rs. 8,335 million for the half year ended June 30, 2026, compared to Rs. 7,732 million for the corresponding period last year; registering increase of Rs. 603 million or 8%, mainly on account of higher card related fee, card acquiring business, investment banking fee, partially offset by lower commission on remittances.
Dividend income of the Bank stood at Rs. 2,023 million for the half year ended June 30, 2026 as compared to Rs. 1,374 million for the half year ended June 30, 2025, increased by 47%
Due to unrealized loss on fair value through profit and loss securities, capital gain of the Bank for the half year under review was Rs. 490 million compared to a capital gain of Rs. 1,687 million for the half year ended June 30, 2025.
Foreign Exchange income of ABL stood at Rs. 3,393 million for the half year ended June 30, 2026, against Rs. 2,927 million for the half year ended June 30, 2025, increasing by 16%. The Bank’s other income amounted to Rs. 1,408 million in first six months of 2026, compared to Rs. 411 million in the same period last year, expanding by 242%.
Cumulatively, non-markup or non-interest income of the Bank stood at Rs. 15,650 million for the half year ended June 30, 2026, reflecting a 11% increase from Rs. 14,131 million in the corresponding period last year.
Allied Bank’s continued investment in expanding its branch network and strengthening its technology infrastructure resulted in a moderate increase in operating expenses during the six-month period. Nevertheless, the Bank’s disciplined approach to cost optimization, supported by process automation, digitalization, and enhanced operational efficiencies, enabled it to contain the growth in operating expenses to 11%, reflecting its continued focus on sustainable productivity and long-term value creation. Total operating expenses amounted to Rs. 35,749 million for the half year ended June 30, 2026, compared to Rs. 32,129 million for the half year ended June 30, 2025.
For the half year ending June 30, 2026, profit before taxation stood at Rs. 32,046 million, reflecting a 13% decrease from Rs. 36,970 million in the corresponding period ended June 30, 2025.
The Bank’s profit after taxation for the half year ended June 30, 2026, stood at Rs. 15,713 million, compared to Rs. 17,457 million in the corresponding period of 2025, lower by 10%.
During the period, the Bank further strengthened its physical presence through the expansion of its branch network, the establishment of additional digital and smart branches, and the refurbishment of existing locations to provide a modern, seamless, and customer-centric banking experience. As at June 30, 2026, the Bank operated a network of 1,537 branches, comprising 1,194 conventional branches, 321 Islamic branches, and 22 digital branches. This nationwide footprint is complemented by a comprehensive self-service banking infrastructure of 1,713 Automated Teller Machines (ATMs), including 1,461 on-site ATMs, 243 off-site ATMs, and 9 Mobile Banking Units (MBUs). The Bank also has a network of 491 Cash Deposit Machines (CDMs) as on June 30, 2026.
Gross advances of the Bank were recorded at Rs. 770 billion as of June 30, 2026, compared to Rs. 802 billion as of December 31, 2025. Similarly, net advances of ABL were Rs. 757 billion as of June 30, 2026, compared to Rs. 790 billion as of December 31, 2025; thereby, declining by 4%.
The Bank’s disciplined risk management framework, proactive monitoring of credit exposures, and robust recovery efforts continue to support a healthy asset mix while safeguarding long-term financial stability. As of June 30, 2026, the Bank’s infection ratio stood at 1.53%, as compared to 1.42% for the year ended December 31, 2025. The overall coverage ratio was recorded at 106.2% as of June 30, 2026, compared to 109.1% as of December 31, 2025.
Bank’s total investments stood at Rs. 2,483 billion as of June 30, 2026, compared to Rs. 2,137 billion as of December 31, 2025, depicting a growth of 16%.
Total deposits were Rs. 2,618 billion as of June 30, 2026, compared to Rs. 2,346 billion as of December 31, 2025, reflecting a healthy growth of 12%.
Allied Bank recorded strong growth with total assets rising to Rs. 3,735 billion as of June 30, 2026, versus Rs. 3,370 billion at the end of December 2025, growing by 11%. The Bank’s net assets decreased by 2% mainly on account of revaluation deficit on federal government securities, reaching Rs. 258 billion as of June 30, 2026, compared to Rs. 263 billion on December 31, 2025.
The Return on Assets (ROA) and Return on Equity (ROE) Tier 1 of the Bank recorded at 0.9% and 15.7%, respectively, as of June 30, 2026. The Capital Adequacy Ratio (CAR) stood at 24.97% as of June 30, 2026, remaining well above the minimum regularity threshold of 11.5%.
Copyright Business Recorder, 2026
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