Allied Bank: Sovereign leads the way

Allied Bank Limited (ABL) reported its first quarter 2026 results and declared an interim cash dividend of Rs4 per share, a payout that broadly matched market expectations. According to Business Recorder, revenue still grew at a solid pace despite lower average interest rates than a year earlier, largely because earning assets expanded by double digits.

The investment portfolio rose 17 percent from December 2025, adding Rs368 billion to reach Rs2.5 trillion, and the investment to deposit ratio touched 105 percent, the highest ever. Advances moved the other way, dropping Rs85 billion to Rs704 billion, while the advances ratio fell almost 10 points year on year to below 30 percent.

Markup expense nearly doubled from a year earlier, and investments now produce close to three quarters of markup income. The CASA ratio barely moved from December 2024 levels, and administrative costs rose faster than inflation as spending on technology and branches continued. Business Recorder added that the recent rate increase is expected to prompt repricing of assets.