Allied Bank Limited has outlined plans to significantly expand its Islamic banking network while accelerating its digital transformation efforts as part of its broader growth strategy. The bank aims to increase the number of Islamic banking branches to more than 200 by the end of 2026. The strategy was shared during the bank’s latest corporate briefing arranged by Intermarket Securities, where management highlighted key initiatives intended to strengthen the bank’s market position and support long term growth in the evolving financial services sector.
Alongside the expansion of its Islamic banking footprint, the bank is increasing investment in digital infrastructure and technology. Management stated that extensive work is underway to enhance Information Technology systems, including upgrades to the bank’s core banking platform and improvements to its mobile banking application. The bank is also expanding the use of artificial intelligence and increasing server capacity to support growing digital services and ensure smoother operations for customers using online and mobile banking channels. These measures form part of the institution’s efforts to adapt to shifting customer preferences as digital financial services continue to gain importance across Pakistan’s banking landscape.
The bank is also focusing on strengthening its presence in the small and medium enterprise and small loan segments, which management considers an important area for future growth. In addition, Allied Bank aims to achieve deposit growth exceeding 15 percent during 2026 and is seeking to expand its share in home remittance inflows. As part of its strategy to promote digital transactions, the bank plans to increase the number of debit cards in circulation from around 3.9 million to nearly 5 million cards, a move expected to support the transition toward electronic payments and reduce reliance on traditional branch based transactions.
Financial results for the year ending December 31, 2025 show that the bank reported profit after tax of Rs36.33 billion, reflecting a decline of 18.2 percent compared with Rs44.39 billion recorded in 2024. Earnings per share stood at Rs31.73, down from Rs38.77 a year earlier. The board approved a final cash dividend of Rs4 per share in addition to interim dividends of Rs12 per share already paid during the year, taking the total payout for 2025 to Rs16 per share. During the same period, mark up and interest income declined due to lower policy rates and reduced asset yields, while funding costs also decreased. Despite the earnings decline, the bank maintained a strong balance sheet, with its equity base rising to Rs263 billion and its capital adequacy ratio remaining robust at 28 percent.
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