Karachi, February 16, 2026: Bank Alfalah Limited on Monday reported a sharp 26% year-on-year decline in profit after tax for the calendar year ended December 31, 2025, reflecting rising operating costs despite higher income.
According to the unconsolidated financial results submitted to the Pakistan Stock Exchange, the bank posted a net profit of Rs28.34 billion in 2025, down from Rs38.32 billion recorded in the previous year. As a result, earnings per share (EPS) fell to Rs17.97 from Rs24.30 in CY24.
The board of directors, in its meeting held on February 13, 2026, in Abu Dhabi, approved a final cash dividend of Rs3 per share for the year. This is in addition to three interim cash dividends already paid at 25% each, bringing the total payout for the year to 105%.
Despite the drop in bottom-line profitability, Bank Alfalah posted growth in its core income streams. Net interest income increased to Rs135.85 billion from Rs126.82 billion, while non-interest income rose to Rs47.51 billion from Rs44.41 billion. Consequently, the bank’s total income climbed to Rs183.36 billion, compared to Rs171.23 billion a year earlier.
However, escalating operating costs weighed heavily on profitability. Operating expenses surged to Rs116.24 billion in 2025 from Rs84.37 billion in the preceding year, pushing total expenses up to Rs117.72 billion from Rs86.28 billion.
On the tax front, the bank’s income tax payment declined to Rs34 billion, down from Rs44.78 billion in CY24, providing some relief amid mounting costs.
Market analysts noted that the significant rise in operating expenses offset gains in income, leading to the notable profit contraction. Going forward, cost management and operational efficiency are expected to remain key focus areas for the bank to restore earnings momentum.