KARACHI- Allied Bank Limited (ABL) is expected to post Rs6.5 billion profit after tax with Rs9.2 EPS in the calendar year 2009 as against earnings of Rs4.2 billion last year, an increase of 57 per cent year-on-year. This assumption is made on the basis of a potential sharp growth in banks net interest income in 2009. According to JS Research calculations, in 4QCY09 alone, the bank is anticipated to report earnings of Rs1.5 billion (EPS Rs2.1). The bank might announce a dividend of Rs1.5/share, taking the cumulative dividend to Rs3.5/share for the year. The Board of Directors of ABL may also announce the bonus issue for the shareholders in full year results ABL can do not rule out the possibility of a bonus issue with the announcement. ABL Net Interest Income is expected to post a 32 per cent YoY growth to Rs18.5 billion in 2009, on the back of higher YoY KIBOR and strong recovery in advances, post 1Q2009, with higher spreads also adding support. NIMs are expected to jump 10bps to 5.8 per cent in the 4Q, compared to the nine month average of 5.7 per cent. However, this is predicted to slightly lower than 6 per cent achieved in the 3Q. Non Interest Income is also likely to witness strong growth of 15 per cent QoQ and arrive at Rs6.3 billion for the year. The JS Research further see provisions to take a QoQ jump in the final audited quarter and arrive at Rs4.9 billion for the full year. However, higher provisions in the fourth quarter could be soothed by the increased FSV benefit allowed by the SBP. Further, there remains a question mark relating to the restructuring of its Sukuk issue to a local cement company, where the bank has an exposure of Rs3.2 billion. ABL currently records this under the Investments head in its financials, and thus an impairment charge through the P&L remains on the cards.