Allied Bank Limited has successfully regained its profitability, which increased by 9.5 percent in 2019.
Accordingly, the bank's profit increased to Rs. 14.11 billion in 2019 compared to Rs. 12.8 billion recorded in 2018.
This is the second-highest profit made by the bank in its history. Earlier in 2016, the bank made an all-time high profit of Rs. 14.4 billion which was shortlived due to substantial cuts in the interest rates.
With an increase in interest rates and investment opportunities in government securities and bonds, the bank recovered its profitability gradually, crossing Rs 14 billion.
Due to higher interest rates, the bank generated an interest income of Rs. 41.5 billion in this period as compared to Rs. 32.1 billion reported under the same head. On the contrary, the bank's income from non-markup avenues declined to Rs. 10.89 billion in 2019 from Rs. 11.28 billion.
The bank's earning per share surged to Rs. 12.32 from Rs. 11.25. The board of directors announced a dividend of Rs. 2 per share in addition to Rs. 6 per share announced in the previous quarters.
The bank's expenses also grew to Rs. 27.7 billion in 2019 from Rs. 23.4 billion reported in 2018.
Allied Bank Limited is the fifth-largest bank in Pakistan in terms of assets and deposits operating with a wide network of branches and ATMs. However, in terms of profitability, it is unlikely to retain its fourth position in the banking industry due to competing banks that outperformed it in terms of profit during 2019.
ABL acquired and installed a world-class Robotic Process Automation software to leverage its capabilities to instill and further augment operational efficiencies. Its innovation strategy also encompasses forging strong partnerships with leading technology platforms and partners to facilitate the provision of premier services for customers while simultaneously playing a positive role in expanding the domestic innovation ecosystem.
During the period under review, the bank collaborated with Avanza Premier Payment Services to revamp online transactions through the Payfast payment gateway, allowing customers to shop on Avanza Premier Payment Services' vast merchant base ranging from schools, billers, mutual funds, marketplaces, and other entities directly through their bank accounts.
Source: Pro Pakistani