Tag Archives: ABL

Board meeting of Allied Bank Limited be held on August 05, 2015

Karachi: Allied Bank Limited informed Karachi Stock Exchange that board of directors meeting of the bank will be held on August 05, 2015 at Lahore. The agenda of the meeting is to interalia consider Financial Statements of the Bank for half Year ended June 30, 2015 and declaration of any entitlement.

“Allied Bank Limited is incorporated in Pakistan under the Companies Ordinance, 1984. It is a scheduled bank, engaged in commercial banking and related services. The Bank operates a total of 948 branches in Pakistan, 1 branch in Karachi Export Processing Zone Branch, and 1 wholesale banking branch in Bahrain. The subsidiary of the company includes ABL Asset Management Company Limited. The bank is listed on the Karachi, Lahore and Islamabad Stock Exchanges of Pakistan. The registered office of the bank is situated at Lahore.

The services of the company are in the personal and business banking segment. The services of the bank in the banking segment includes everyday accounts, lifestyle banking, savings and term deposits, credit and debit cards, domestic remittances, banc-assurance and e-banking services.

The symbol “ABL” is being used by the stock exchanges for the shares of Allied Bank Limited.

Banking sector earning to remain flat in 2Q

LAHORE: With 1Q sector earnings rising by 24 percent, the banking sector experts view a similar trend is likely to prevail for the remaining part of the year. High interest rate environment is likely to keep spreads steady at current levels of 7.5 percent. Further, many of the banks continue to work on generating a higher fee income via increased share of export and remittance business, with large banks streamlining international operations for this purpose.

Although NPLs have been on the rise since 2H2010, managements remain of the view that the dampening provisioning affect on the earnings is likely to decline over the next 12 months due to already high loan coverage. With average loan coverage of the big-5 banks at 74 percent (ABL highest at 81 percent, NBP lowest at 62 percent) a slowdown in new accretions is likely to provide significant boost to earnings. Further, this is supported by the increased number of NPLs under the fully provided loss category.

Banks have been utilizing bulk of their deposits collected over the past 18-24 month in treasury securities as the government continues to raise funds at relatively attractively yields. More so, this continues to be a suitable option for the banks given their stringent risk policy structure post increasing NPLs.

Although, this is likely to persist in the medium term, large banks are looking to build up their loan books as well, especially with demand coming in from energy and textile sectors. On the liability front, concentration on CASA deposits in order to keep their cost of deposits in check remains high on the agenda for all big banks.