KARACHI: Allied Bank continues to enhance its resilience through digital innovation, operational efficiency, and a strong focus on customer experience. These efforts are supported by prudent risk management, portfolio diversification, and a robust capital base, underpinning sustainable growth.
The Bank recorded mark-up / interest income of Rs260,813 million for the nine months ended September 30, 2026, compared to Rs221,750 million for the nine months ended September 30, 2025, reflecting an increase of 18 percent. This increase primarily stems on account of higher average volumes of mark-up bearing assets.
Conversely, mark-up or interest expense of the Bank has increased by Rs37,767 million or 26 percent to reach Rs180,930 million for the nine months ended September 30, 2026, compared to Rs143,164 million for the nine months ended September 30, 2025. This increase is on account of higher borrowing expense, deposit cost and interest expense on right of use asset.
Resultantly, net mark-up and interest income reached at Rs79,883 million during the nine months ended September 30, 2026 as compared to Rs78,586 million during the same period last year, increasing by Rs1,297 million or 2 percent.
Fee income stood at Rs12,332 million for the nine months ended September 30, 2026, compared to Rs11,783 million for the corresponding period last year; registering increase of Rs549 million or 5 percent, mainly on account of higher card related fee, card acquiring business, branch banking fee, partially offset by lower commission on remittances and investment banking.
Dividend income of the Bank stood at Rs2,659 million for the nine months ended September 30, 2026 as compared to Rs1,929 million for the nine months ended September 30, 2025, increased by 38 percent.
Capital gain of the Bank for the nine months under review stood at Rs1,797 million compared to a capital gain of Rs2,550 million for the nine months ended September 30, 2025.
Foreign Exchange income stood at Rs4,578 million for the nine months ended September 30, 2026, against Rs4,397 million for the nine months ended September 30, 2025, increasing by 4 percent. The Bank’s other income amounted to Rs1,666 million in first nine months of 2026, compared to Rs515 million in the same period last year, expanding by 223 percent.
Cumulatively, non-markup or non-interest income of the Bank stood at Rs23,033 million for the nine months ended September 30, 2026, reflecting a 9 percent increase from Rs21,174 million in the corresponding period last year.
Allied Bank’s continued focus on expanding its branch network and upgrading its technology infrastructure contributed to an increase in operating expenses during the nine-month period. However, the Bank’s prudent cost management measures, coupled with process automation, digital transformation, and improved operational efficiencies, helped limit the growth in operating expenses to 13 percent, underscoring its commitment to operational productivity, cost discipline, and sustainable long-term growth. Total operating expenses amounted to Rs55,650 million for the nine months ended September 30, 2026, compared to Rs49,250 million for the nine months ended September 30, 2025.
For the nine months ended September 30, 2026, profit before taxation stood at Rs47,181 million, reflecting a 14 percent decrease from Rs54,815 million in the corresponding period ended September 30, 2025.
The Bank’s profit after taxation for the nine months ended September 30, 2026, stood at Rs23,052 million, compared to Rs25,874 million in the corresponding period of 2025, lower by 11 percent.
During the period, the Bank continued to enhance its outreach through branch network expansion, the addition of digital and smart branches, and the modernisation of existing locations to deliver an improved and customer-focused banking experience. As at September 30, 2026, the Bank’s network comprised 1,546 branches, including 941 conventional, 583 Islamic, and 22 digital branches. This extensive footprint is further supported by 2,013 ATMs, comprising 1,758 on-site ATMs, 247 off-site ATMs, and 8 Mobile Banking Units (MBUs), alongside 499 Cash Deposit Machines (CDMs), further strengthening access to convenient self-service banking facilities nationwide.
Gross advances of the Bank were recorded at Rs819 billion as of September 30, 2026, compared to Rs802 billion as of December 31, 2025. Similarly, net advances were Rs807 billion as of September 30, 2026, compared to Rs790 billion as of December 31, 2025; thereby, increasing by 2 percent.
The Bank continues to maintain a sound asset quality profile through prudent risk management, vigilant credit monitoring, and effective recovery measures, reinforcing its financial resilience and long-term stability. As of September 30, 2026, the Bank’s infection ratio stood at 1.39 percent, as compared to 1.42 percent for the year ended December 31, 2025. The overall coverage ratio was recorded at 106.2 percent as of September 30, 2026, compared to 109.1 percent as of December 31, 2025.
Bank’s total investments stood at Rs2,205 billion as of September 30, 2026, compared to Rs. 2,137 billion as of December 31, 2025, depicting a growth of 3 percent.
Total deposits were Rs2,591 billion as of September 30, 2026, compared to Rs2,346 billion as of December 31, 2025, reflecting a healthy growth of 10 percent.
Allied Bank recorded growth of 5 percent in total assets which rose to Rs3,533 billion as of September 30, 2026, from Rs3,370 billion at the end of December 2025. The Bank’s net assets reached at Rs254 billion as of September 30, 2026, compared to Rs263 billion on December 31, 2025.
The Return on Assets (ROA) and Return on Equity (ROE) Tier 1 of the Bank recorded at 0.9 percent and 15.2 percent, respectively, as of September 30, 2026. The Capital Adequacy Ratio (CAR) stood at 23.89 percent as of September 30, 2026, remaining well above the minimum regularity threshold of 11.5 percent. The Bank declared a dividend of Rs4.00 per share for the quarter ended September 30, 2026.
Copyright Business Recorder, 2026