Karachi, August 21, 2025 – Allied Bank Limited has released its consolidated financial results for the first half of calendar year 2025, reporting a significant 25% decline in after-tax profit compared to the same period last year.
The announcement came after the Board of Directors of Allied Bank convened on Thursday to review performance and approve dividends.
According to figures submitted to the Pakistan Stock Exchange (PSX), the Bank recorded a net profit of Rs18 billion for the six months ending June 30, 2025, down from Rs24 billion in the corresponding half of 2024. Earnings per share (EPS) also decreased to Rs15.71 from Rs21, reflecting the decline in overall profitability.
Despite the profit drop, the Board of Allied Bank recommended an interim cash dividend of Rs4 per share for the quarter ended June 30, 2025, in addition to the Rs4 per share already disbursed earlier in the year.
A closer look at the results highlights that net mark-up/interest income fell to Rs51.73 billion from Rs58.52 billion, primarily due to the State Bank of Pakistan’s (SBP) aggressive monetary easing policy. Over the past year, the key policy rate has been slashed from 22% to 11%, exerting pressure on interest margins for the Bank.
However, non-mark-up income provided some relief. Fee and commission income rose sharply to Rs9.87 billion from Rs7.35 billion, showing Allied Bank’s growing focus on diversified revenue streams. Conversely, foreign exchange income declined to Rs2.96 billion from Rs4.08 billion, partly offsetting these gains.
Operating expenses increased to Rs32 billion from Rs28 billion, further squeezing profitability. As a result, profit before tax came in at Rs38 billion, down from Rs47 billion a year earlier. Income tax expenses stood at Rs20 billion versus Rs23.14 billion previously.