KARACHI: The State Bank of Pakistan (SBP) has imposed a penalty of around Rs102 million on Allied Bank Limited for violations of banking regulations, according to the bank’s latest financial disclosures submitted to the Pakistan Stock Exchange (PSX).
In its annual financial statement for the calendar year 2025, Allied Bank revealed that the central bank levied a penalty of Rs102.34 million, marking an increase from Rs93.14 million imposed in the previous year. The penalty reflects regulatory enforcement actions taken by the central bank to ensure compliance with banking laws and operational standards within the financial sector.
Despite the regulatory fine, Allied Bank reported strong financial performance during 2025, with significant growth across key indicators.
According to the bank’s annual report, total assets increased by 20 percent, reaching Rs3,370 billion, indicating disciplined capital allocation and improved operational efficiency. The bank’s gross advances stood at Rs802 billion, while the infection ratio remained low at 1.42 percent, highlighting the institution’s strong asset quality and prudent lending practices.
The bank also reported robust profitability, with net markup and interest income reaching Rs105 billion, supported by effective fund management strategies amid a relatively lower policy rate environment. Meanwhile, non-markup income remained resilient at Rs28.6 billion, driven largely by a 17 percent increase in fee-based income.
On the cost side, operating expenses rose to Rs66.99 billion, although expense growth was contained at 16 percent, reflecting ongoing efforts to maintain operational efficiency.
Allied Bank’s profit after tax stood at Rs35.2 billion, supported by 16 percent growth in deposits to Rs2,346 billion and a significant 89 percent surge in investments to Rs2,137 billion.
The bank also maintained strong financial stability indicators. Its Return on Assets (ROA) reached 1.1 percent, while Return on Equity Tier 1 (ROE) stood at 18.7 percent. Additionally, the bank’s Capital Adequacy Ratio improved to 27.74 percent, well above the regulatory threshold set by the central bank.
Financial analysts note that while regulatory penalties highlight compliance challenges, Allied Bank’s overall financial results demonstrate solid growth and stability within Pakistan’s banking sector.
