Karachi: Allied Bank Limited has released its half-year financial report for the period ending June 30, 2025, highlighting a significant decline in profit after tax. The report, transmitted via PUCARS and available on the bank’s website, reveals a profit after tax of Rs. 17,457 million, a decrease from Rs. 23,641 million in the corresponding period of the previous year.

According to the financial statement, the bank’s earnings per share also saw a big move downward, reflecting a similar 26% decline from the first half of 2024. Despite this downturn, accumulated profits carried forward showed a moderate move upward, reporting an increase to Rs. 132,168 million from Rs. 113,977 million.

The report details several factors affecting the bank’s financial performance. Net markup/interest income decreased, reflecting a very large or significant move downward, due primarily to a substantial reduction in the policy rate since June 2024. Conversely, fee income increased, driven by heightened card-related fees and commission on remittances.

According to information available from the Pakistan Stock Exchange (PSX), the banking sector’s asset base expanded during this period, although Allied Bank’s gross advances saw a big move downward. The bank’s non-markup income increased, buoyed by capital gains and other income, despite declines in dividend and foreign exchange income.

The broader economic context provided by the report indicates that Pakistan’s economy is showing signs of recovery, supported by easing inflation and a stable exchange rate. However, the stock market continues its bullish trend, with the KSE-100 Index closing at 125,627 points at the end of June 2025.

Overall, while Allied Bank’s financial performance for the first half of 2025 reflects some challenges, it continues to innovate and expand its customer base, offering a range of tailored products and maintaining its commitment to corporate social responsibility.