Karachi: Allied Bank Limited has reported a decline in profit after tax for the half-year period ending June 30, 2026, as per the financial results disclosed in its Directors' Review. The profit after tax stood at Rs. 15,713 million, marking a decrease of 10% from the previous year's Rs. 17,457 million. This was accompanied by a drop in Earnings Per Share (EPS) from Rs. 15.25 in 2025 to Rs. 13.72 in 2026, reflecting the bank's moderate move in financial performance.
Despite the decline in profit, the Board of Directors has approved an interim cash dividend of Rs. 4.00 per share, in addition to the first interim cash dividend already disbursed. Consequently, the total interim cash dividend for the half-year ended June 30, 2026, remains at Rs. 8.00 per share, consistent with the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the benchmark KSE-100 Index experienced a significant move, closing at 180,302 points at the end of June 2026. This represents a 43.5% increase from the previous year, while market capitalization rose by 32.5% to Rs. 20.19 trillion, equivalent to USD 72.73 billion.
The global economic environment during the first half of 2026 was marked by geopolitical tensions and disruptions in the Middle East, affecting energy supplies and causing price volatility. The International Monetary Fund (IMF), in its July 2026 World Economic Outlook update, projected global GDP growth at 3.0% for the year, slightly down by 0.1% from the April forecast. Global inflation expectations were revised upward to 4.7%, up by 0.3% from earlier estimates.
Domestically, Pakistan's economy showed resilience, with the IMF maintaining the GDP growth estimate at 3.6% for FY'26. The Pakistan Bureau of Statistics recorded a slightly higher GDP growth of 3.7%, with the economy expanding to USD 452 billion. The fiscal deficit narrowed, and FBR tax collections increased by 10.8% to Rs. 12.13 trillion during the fiscal year, supported by growth in tax revenues.
In the external sector, exports remained stable at USD 40.9 billion, while imports surged by 8.5% to USD 76.4 billion, widening the trade deficit by 20% to USD 35.5 billion. Workers' remittances reached a record USD 41.6 billion, providing a buffer despite the current account moving to a deficit of USD 139 million for FY'26.
The economic landscape was further impacted by inflationary pressures, with the average CPI inflation rising to 7.1% during FY'26, compared to 4.5% in FY'25. The Monetary Policy Committee maintained the policy rate at 11.5% in June 2026, citing improved macroeconomic conditions amidst geopolitical uncertainties.