Quarter ended March 31: Allied Bank's PAT rises to Rs 3.77 billion

The Bank's long-term multi-pronged strategy encompassing effective risk management, deepening of technology driven product suite, automation driven optimization of operational activities and strategic expansion in outreach continues to provide an enabling platform for enriching banking experience for valued customers while developing competitive advantage over competitors and overcoming the challenges.
The Bank's net interest income rose to Rs 8,012 million for the quarter ended March 31, 2018 from Rs 7,992 million in the corresponding period of last year, on account of volumetric growth in average earning assets. Furthermore, continuous growth in average CASA deposits and optimum funding mix assisted in reduction of Interest expense for the period under review as compared to the corresponding period of last year. The Bank's effective technology driven Risk Management framework yielded results with 28 percent rise in the reversal against Non-Performing Loans (NPL), which aggregated to Rs 505 million for the quarter ended in March 31, 2018 as compared to net provision reversal of Rs 394 million in the corresponding period last year.
Net Mark-up Income after provision increased by 2% to Rs 8,518 million during the quarter under review as compared to Rs 8,386 million during the corresponding period of last year. During the quarter, Non-markup/interest income (NII) amounted to Rs 3,360 million posting a significant increase of 62% over March 2017. The Bank's equity investment portfolio comprising of high dividend yielding blue chip securities continued to yield attractive returns as dividend income increased by 30% to Rs 550 million during the quarter as against Rs 421 million in corresponding period of last year. Fee, Commission and Brokerage income increased to Rs 1,156 million during the quarter under review. Capitalizing on opportunities present in FX market, the Bank, posted an increase of 61% in income from dealing in foreign currencies during the quarter under review, to close at Rs 271 million in March'18.
Augmenting the Bank's status as Primary Dealer, the Bank also realized capital gains on sale of government securities of Rs 1,343 million during the quarter under review. The Bank remained on course for enhancing financial inclusion of country's vast unbanked population through increasing outreach vide conventional and Alternate Delivery channels across country. The overall branch network expanded to 1,253 branches including 117 dedicated Islamic banking branches. Similarly, ATMs network increased to 1,329 ATMs including 274 off-site ATMs located at strategic locations. Ongoing investment in technology and network expansion resulted in administrative expenses growing by 10% to reach Rs 5,232 million during the quarter under review.
As disclosed in Annual Report 2017, under the Suo Motu case SMC No. 20/2016 the Honorable Supreme Court had taken up the matter relating to pension arrangements of certain privatized banks including Allied Bank Limited. The Honorable Supreme Court of Pakistan concluded the Suo Motu case on February 13, 2018, by using judicial discretion and fixed the minimum pension and indexation levels for eligible staff, on humanitarian grounds. In view of the underlying judgement, the Bank under the guidance of legal counsel, has booked the related past service cost of Rs 265 million based on an actuarial valuation; as an extra-ordinary item.
The Bank's Profit Before Tax witnessed a growth of 9% to close at Rs 6,075 million for the quarter ended March 31, 2018. Similarly, Profit After Tax increased by 5% to Rs 3,771 million for the quarter ended March 31, 2018.
During the period under review, the Bank's EPS stood at Rs 3.29 per share as compared to Rs 3.15 per share in corresponding period. Return on Equity and Return on Assets also stood at a robust level of 18.7% and 1.3% respectively.
Gross advances of the Bank grew by 4% in comparison to December 2017 and surpassed Rs 400 billion to close at Rs 402,623 million as at March 31, 2018. Through unrelenting recovery efforts and utilization of industry's leading risk management platform, the Bank further reduced the Non-Performing Loans portfolio by Rs 1,398 million to Rs 16,653 million. As a result, infection and coverage ratio improved to 4.1% and 97.3% respectively, well above the December 2017 industry's average of 8.4% and 87.2%. No FSV benefit has been taken while determining the provision against Non-Performing Advances as allowed under BSD Circular No. 01 dated October 21, 2011. In line with the industry's trend of declining assets, total Assets of the Bank stood at Rs 1,122 billion as at March 31, 2018. While total equity remains strong at Rs 111,120 million as at March 31,2018.-PR