KARACHI - The unconsoli-dated profitability of the Allied Bank Limited is expected to increase to Rs2 billion in the first quarter (Jan-March) of current calendar year as against the profit of Rs1.4 billion during the same quarter last year. The healthy 38 per cent YoY growth assumed for the bank in the first three months of the ongoing calendar year accounts for higher average advances and stable net interest income earned by the bank during the period under review. The earning per share (EPS) of the bank for the first quarter is predicted to be at Rs2.56 compared to Rs1.85 in January-March 2010. In anticipation of posting considerable growth, ABL may announce a cash dividend of Rs1/share for the shareholder in IQ2010. Moreover, banking sector analysts estimate the earnings of the United Bank Limited to inch up to Rs2.8bn, translating into an annualized EPS of Rs2.28 in Jan-March CY10 as against earnings of Rs2.5 billion with Rs2.07 EPS during the corresponding period past year. The bank possibly will register 10 per cent YoY boost in growth in the reported quarter; however, it is unlikely to expect any payout from UBL in the specific course of this calendar year. According to the information dispatched to KSE the other day, ABL and UBL, two leading commercial banks in the private sector, are scheduled to announce their 1Q2010 results on Apr 24 and Apr 26, 2010, respectively. In a financial result forecast issued by JS Research on Thursday, it was projected that ABLs Net Interest Income (NII) to post a healthy growth of 5.7 per cent in the current quarter. NII will be supported by the low cost of deposits as the bank continues to focus on less expensive current and saving accounts (CASA) deposits. The report expects provisions from NPLs to drop by 2 per cent YoY, at Rs800 million. However, they will remain sticky QoQ, with the jump coming from specific provisions on Japan Power Generation Ltd at Rs159mn, routing of which through the P&L was delayed last quarter. About UBL, the report opines UBLs strategy to maintain an enhanced focus towards low cost CASA deposits and shed off high cost deposits, will continue to pay dividends in the 1Q2010- similar to 4Q2009- as mark up paid is expected to decline by 26 per cent YoY to Rs6.1 billion. The cost of funds is expected to drop to 4.5 per cent in 1Q from 2009s average of 5.3 per cent. Non Interest Income is expected to surge by 20 per cent to Rs2.5 billion on higher fee income and increased benefit from capital gains. The report also predicts provisions for NPLs are expected to arrive at Rs1.7 billion, up 9 per cent YoY.