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Tag: Bank Alfalah

  • Bank Alfalah posts 45% growth in profit after tax

    Bank Alfalah posts 45% growth in profit after tax

    KARACHI: The Board of Directors of Bank Alfalah Limited (BAFL), in its meeting held on April 26, 2022, approved BAFL’s financial results for the quarter ended March 31, 2022. The Bank’s impressive performance for 2022 is an endorsement of its customer centricity and product innovation driven by the growth strategy.

    The growth trajectory continued in the first quarter of 2022. The Bank declared record profit after tax of 5.019 billion, showing a double digit growth of 45 per cent YoY,  that translated into an EPS of Rs2.82 (SPLY: Rs. 1.95).

    READ MORE: Bank Alfalah, Paymob collaborate for digital payments

    This is one of the highest growth in profit after tax for Q1 across the industry, and is the testament that Bank Alfalah is maintaining its competitive position in the industry.

    During the period under review, the Bank’s revenue increased by 31.9 per cent backed by strong net interest income and non-interest income growth. The Bank’s net interest margins improved year on year as a result of well thought out, focused and prudent ALM strategy, along with strong deposits growth.

    The growth continued the upward trajectory with a growth momentum in home remittance business and trade flows, increase in market share, higher debit and credit card spend.

    READ MORE: Mastercard, Bank Alfalah enter strategic partnership

    Non-markup expenses were 21.6 per cent higher compared to the same period last year. This surge was driven by the full year impact of new branches opened last year along with expenses attributable to new initiatives.

    The Bank continues to invest in technology, people and businesses, to improve market share and to become a leading transactions Bank. Despite the investment in multiple initiatives, Bank Alfalah witnessed an improvement in the cost to income ratio to 55.1 per cent.

    The Bank’s quarter end deposit footing stood at Rs. 1.178 trillion at the end of Q1’22, with YoY growth of 29.0 per cent compared to Q1’21. The Bank continues to outpace the industry in deposit growth as well as exceptional current account growth. The current and savings accounts achieved an impressive YoY growth of 31.0 per cent and 35.6 per cent respectively. Bank Alfalah’s CASA mix noted an increment to 80.6 per cent versus 78.2 per cent SPLY that reinforces the clients’ trust on the Bank.

    READ MORE: Bank Alfalah tops in house financing under MPMG

    The Bank grew loans by record 17.3 per cent YoY, while maintaining stellar credit discipline and a strong balance sheet with significant capital and liquidity positions. Part of this growth is backed by government-backed schemes for economic development, in which the Bank’s delivery of Mera Pakistan Mera Ghar and Prime Minister’s Kamyab Jawan Scheme is ranked amongst the top performing banks.

    The Bank, not only achieved the targets but also added value to these initiatives of SBP with effective marketing. As at the period end, the Bank’s gross advances to deposits ratio achieved 60.4 per cent, which is one of the highest in the industry. The Bank’s non-performing loans ratio stood at 3.4 per cent, while the non-performing loans remain fully covered.

    READ MORE: Financing for Mera Pakistan Mera Ghar gains momentum

    Despite the robust growth in advances, the Bank’s remains adequately capitalized, and well above the regulatory requirement with 14.77 per cent as at December 31, 2021.

    This momentum will continue, despite the prevailing uncertainty, since the Bank is committed to its strategy of growth, customer centric approach and innovation.

  • Bank Alfalah, Paymob collaborate for digital payments

    Bank Alfalah, Paymob collaborate for digital payments

    KARACHI: Bank Alfalah Limited and Paymob, MENA’s market-leading digital payments provider have collaborated to activate and support merchant acquisition and integration services across Pakistan.

    The partnership will empower over 100,000 merchants across Pakistan and launch new innovative services in e-commerce acceptance for online merchants.

    This partnership records Paymob’s first collaboration outside its Egyptian home market and comes as part of its expansion strategy in the MENAP region.

    Bank Alfalah’s partnership with Paymob will drive financial inclusion and lead the way for swift payment acceptance, and will follow Bank Alfalah’s objective to support merchant acquisition and integration services across the country.

    This collaboration will enable an instant onboarding feature for the first time in Pakistan using Paymob’s advanced solutions such as payment gateway integration, POS terminals and Soft POS.

    The instant onboarding feature is empowered by the digital onboarding regulations recently published by the State Bank of Pakistan and comes as one of many positive steps the State Bank has led to enable MSME Merchants in order to further digitize the ecosystem.

    The market opportunity in Pakistan is significant given the range of retail outlets and SME businesses across the country’s cities. With over four million SMEs using just over 80,000 POS terminals and less than 3000 e-commerce payment gateways, the market is perfectly suited to meet Paymob’s criteria and strategy to expand globally – and bridge the digital financial gap.

    Speaking at the signing ceremony in Karachi, Atif Bajwa, President and CEO of Bank Alfalah said: “Bank Alfalah is proud to partner with Paymob in one of Pakistan’s largest Fintech partnerships. Our collaboration will aim to serve thousands of merchants across Pakistan and the industry first “Tap-on-Phone” service will allow us to reach even the most remotely located merchants in Pakistan.”

    Alain El-Hajj COO of Paymob, said: “This is a remarkable moment for Paymob. We are honored to partner with Bank AlFalah under its progressive leadership to provide reliable and seamless digital payment services for SMEs across Pakistan. With this partnership we aim to contribute the shared vision of economic growth and digitization of SMEs.”

    Pakistan’s market has several positive drivers. GDP growth is forecast at 5-6 per cent per annum, with the total value of e-commerce consumer goods having grown by 83 per cent in 2021 to reach US$3.9 billion.

    The Pakistan Telecommunication Authority reports that 101 million people use the internet in Pakistan, with 46% having access to broadband services and 85 per cent (183 million) to mobile connections.

    According to the PIDE, Pakistan has the potential for significant Fintech growth, due to its increasing youth population, disruptive internet and smartphone penetration, consumer preferences for mobile phones and social media, a booming e-commerce market facilitating digital payments, and the financial system’s overall capacity for innovation.

  • Mastercard, Bank Alfalah enter strategic partnership

    Mastercard, Bank Alfalah enter strategic partnership

    KARACHI: Mastercard and Bank Alfalah have entered into a strategic partnership to empower businesses in Pakistan through the launch of two of Mastercard’s market-leading solutions powered by Mastercard Payment Gateway Services  – Tap on Phone and Simplify Commerce – leveraging the power of technology to catalyze success and boost financial inclusion for businesses across the market, with a special focus on small enterprises.

    The partnership allows businesses of all sizes to sign up for Mastercard Tap on Phone – an innovative, intuitive, and cost-effective application that allows businesses to embrace electronic acceptance through their smart mobile or tablet device.

    Once downloaded, businesses can immediately offer it to their customers, providing consumers with a flexible, seamless, intuitive, and secure checkout experience.

    Tap on Phone turns Android smartphones into secure payment acceptance devices for contactless cards, mobile wallets and smartwatches – with no additional equipment or setup-related costs, making it ideal for SMEs.

    The partnership with Bank Alfalah will also see the first-ever launch of Mastercard Simplify Commerce in Pakistan.

    The technology provides businesses with a suite of powerful payments and business management features that help simplify backend processes, allowing merchants to focus on core business functions as they enter and thrive in the digital marketplace.

    According to the Pakistan Bureau of Statistics, in 2019, SMEs constitute nearly 90 per cent of entirely private businesses and employ almost 78 per cent of the non-agricultural labor force in Pakistan reflecting the huge potential for digitalization of these businesses to boost the nation’s economy.

    Atyab Tahir, Pakistan Country Manager, Mastercard, said: “By partnering with Bank Alfalah, Mastercard is making it possible for businesses to realize their full potential with two of its most innovative digital payment solutions for the first time in Pakistan – Mastercard Tap on Phone, and Simplify Commerce.

    “The provision of smartphone-based acceptance solutions is a much-needed development in the pursuit of financial inclusion, particularly in Pakistan whose population of 220 million people is significantly underserved by digital point-of-sale solutions and platforms.”

    Mastercard simplify is specifically designed to be easy to set up, making it possible for merchants with only a minimal amount of digital experience to access a convenient and secure acceptance solution and receive payments within a matter of minutes.

    Mehreen Ahmed, Group Head – Retail Banking, Bank Alfalah, said: “The integration of the Mastercard Tap on Phone and Simplify Commerce platform is a gamechanger for Bank Alfalah SME customers and millions of consumers who will now gain access to a seamless, secure and intuitive checkout experience through their contactless cards and devices.

    “By providing merchants in Pakistan with the ability to affordably turn their Android phones into secure payment acceptance devices, Bank Alfalah is making a significant contribution to SME growth and inclusion within Pakistan’s flourishing digital economy.”

    The announcement builds on Mastercard’s longstanding relationship with Bank Alfalah and its ongoing support to SMEs in Pakistan and across the MENA region. Globally, Mastercard has pledged to connect one billion people and 50 million micro, medium and small businesses to the digital economy by 2025 – with a direct focus on 25 million women entrepreneurs.

  • Bank Alfalah declares 33.4% surge in annual profit

    Bank Alfalah declares 33.4% surge in annual profit

    KARACHI: Bank Alfalah Limited on Wednesday declared 33.4 per cent surge in net profit for the year 2021.

    According to financial results submitted to Pakistan Stock Exchange (PSX) on Wednesday, the bank announced Rs14.46 billion as consolidated profit after tax earnings for the year ended December 31, 2021 as compared with Rs10.84 billion in the preceding year.

    READ MORE: Bank Alfalah tops in house financing under MPMG

    Bank Alfalah declared earnings per share at Rs8.12 for the year under review as compared with EPS of Rs6.10 during the preceding year.

    The Board of Directors of the bank met on February 02, 2022 at Dubai, UAE and recommended final cash dividend for the year ended December 31, 2021 at Rs2 per share i.e. 20 per cent. This is in addition to interim cash dividend already paid at Rs2 per share i.e. 20 per cent.

    READ MORE: Bank Alfalah enables QR option for retail payment

    The board has not approved any bonus share, right share or any other entitlement / corporate action.

    The board of directors authorized the bank to acquire 521,739 additional ordinary shares of Rs10 each (representing 1.3 per cent of the share capital) of its subsidiary, Alfalah CLSA Securities (Pvt) Limited from minority shareholders of the company. As a result, the total shareholding of the bank in the company will stand at 24,999,912 ordinary shares. Such purchase shall be subject to obtaining of all necessary corporate and regulatory approvals and completion of related formalities.

    READ MORE: Bank Alfalah declares Rs10.48 billion after tax profit

    According to the results, the net mark-up / interest income of the bank rose to Rs46.04 billion for the year ended December 31, 2021 as compared with Rs44.69 billion in the preceding year.

    Total non-mark-up/interest income of the bank grew to Rs17.23 billion in the year 2021 as compared with Rs13.54 billion in the preceding year.

    READ MORE: Bank Alfalah announces 21% growth in half year profit

    Operating expenses of the bank increased to Rs36.54 billion during the year under review as compared with Rs31.62 billion in the preceding year.

  • Bank Alfalah tops in house financing under MPMG

    Bank Alfalah tops in house financing under MPMG

    KARACHI: Bank Alfalah has secured the top position in house financing under the government’s flagship Mera Pakistan Mera Ghar (MPMG).

    According to a statement issued by the State Bank of Pakistan (SBP), Bank Alfalah secured the top position followed by Meezan Bank Limited and Standard Chartered Bank Limited.

    A ceremony was held on Friday at Prime Minister House, Islamabad to mark Rs 100 billion in home finance approvals of the Governments flagship Mera Pakistan Mera Ghar (MPMG) program under the theme “ Khawab ke tabeer ab tez ter”.

    READ MORE: Financing for Mera Pakistan Mera Ghar gains momentum

    The Prime Minister lauded the leading role of the State Bank of Pakistan and the efforts of the banking industry in the implementation of MPMG. He also witnessed ceremonial keys being handed over to six beneficiaries of MPMG who were from different regions and represented a variety of segments of Pakistan.

    Over 20 other beneficiaries of MPMG also participated in the ceremony. The Prime Minister expressed his pleasure to see that low and middle-income citizens who were completely ignored earlier are now being served by the banks in obtaining home finance. While distributing awards among top-performing banks with respect to approvals and disbursements, he urged banks to accelerate their efforts to help realize the dream of every Pakistani to own their own homes.

    The ceremony was attended by Ali Amin Gandhapur-Federal Minister for Kashmir Affairs & Gilgit Baltistan, Dr. Shahbaz Gill-Special Assistant to Prime Minister on Political Communication, Senator Shaukuat Tareen-Adviser to Prime Minister on Finance & Revenue, Governor State Bank of Pakistan, Chairman NAPHDA, Dr. Amjad Ali-Minister for Housing Khyber Pakhtunkhwa and Presidents/CEOs of banks.

    READ MORE: SBP launches webpage for promoting house financing

    Dr. Reza Baqir, Governor State Bank of Pakistan, shared the progress of MPMG since inception, highlighting that all stakeholders are taking steps in the right direction to translate the Prime Minister’s vision of increasing homeownership into reality. Till December 20, 2021, banks have received applications of Rs. 263 billion while approvals of Rs. 109 billion have already been made. Over the last nine months, the approved amount increased by Rs. 98 billion. Disbursement has also increased from almost zero in March 2021 to Rs. 32 billion by December 20, 2021. While shedding light on the theme of the event, he mentioned that during the last month, banks on average approved Rs. 4 billion and disbursed Rs. 1.6 billion on weekly basis. He underscored the need to maintain and accelerate this momentum. There are six banks that disbursed over Rs. 2 billion each and seven banks have disbursed over Rs. 1 billion each in the span of 9 months under MPMG.

    The Governor said that growth in MPMG is attributed to various measures taken by the Government, SBP, and NAPHDA to provide a conducive environment for the banking industry to enter the untapped market of housing and construction finance. He mentioned the simplification of complex procedures, a significant reduction in documentation requirement, development of a model to assess informal income, effective redressal mechanism as examples of this support. Communication initiatives like Mera Pakistan Mera Ghar Meri Kahani –a series of testimonials of MPMG beneficiaries have also been instrumental in encouraging others to apply.

    READ MORE: PM launches house financing scheme for NRPs

    Earlier, in a meeting of the National Coordination Committee on Housing, Construction, and Development (NCCHCD), Governor SBP apprised the Prime Minister on developments in housing and construction finance. He recalled that in July 2020, in line with the Government’s vision of boosting economic activity, SBP mandated banks to increase their housing and construction finance to at least 5 percent of their domestic private sector advances by December 31, 2021. Five banks have already achieved their December 2021 targets. The best performing banks in this regard were Albaraka Bank followed by Meezan Bank and Dubai Islamic Bank. He highlighted that as of December 17, 2021, banks have lent Rs. 321 billion which is Rs. 173 billion more than their financing as of June 30, 2020, reflecting a growth of 117 percent since June 2020. He praised Bank Al Habib, National Bank, and Bank Alfalah for a significant increase in their housing and construction finance portfolio since June 2020 till date.

    In conclusion, Governor Baqir expressed SBPs confidence that the banking industry will continue to pace up its performance rapidly to meet the objectives of Mera Pakistan Mera Ghar and to reach targets mandated for Housing and Construction Finance.

    READ MORE: Meezan Bank becomes pioneer in Sharia financing for low cost housing

    The MPMG event also witnessed speeches from Senator Shaukat Tareen, Adviser to Prime Minister on Finance & Revenue, and Lt Gen Anwar Ali Hyder, Chairman NAPHDA. The Finance Adviser reiterated the Government commitment to MPMG and assured banks to provide all needed support. Chairman NAPHA requested banks to demonstrate commitment in providing housing finance to individuals in NAPHDAs LDA City and Peri Urban projects.

  • Bank Alfalah enables QR option for retail payment

    Bank Alfalah enables QR option for retail payment

    KARACHI: Bank Alfalah has enabled QR option for retail payment at Naheed Supermarket, a statement said on Wednesday.

    Naheed Supermarket, a leading name in the retail shopping sector in Pakistan, has entered into an agreement with Bank Al Falah to enable its Alfa QR at its retail outlet.

    The agreement enables the QR payment option for the Alfa QR customers, providing them ease of payment at the Naheed Supermarket, and can also enjoy upto 20 per cent or Rs 1000 cash back by making payment through Alfa QR as the launch promotion.

    READ MORE: Bank Alfalah declares Rs10.48 billion after tax profit

    The Alfa QR, a product backed by Bank Alfalah, enables the valued users to make payments with just 3 taps within the app.

    With AlfaPay the customers can simply scan AlfaQR codes to make instant payments now at Naheed Super market as a Masterpass merchant.

    Payments can be made using the Bank Alfalah Account, Credit Card, Wallet or with Orbits.

    Sharing his thoughts, Munsub Abrar, CEO Naheed Supermarket said, “We at Naheed Supermarket facilitate our customers in terms of shopping with ease of payments and implementation of Alfa QR facility is our latest addition to it.

    READ MORE: Bank Alfalah announces 21% growth in half year profit

    “The enablement of digital payment system is aligned with the national vision of Digital Pakistan.”

    The agreement was signed by Munsub Abrar, CEO Naheed Supermarket and Adnan Nasir, Head digital Payments, Bank Al-Falah at Naheed’s head office in Karachi, in presence of Abraruddin, Founder and Chairman, Muhammad Fahad COO, Hassan Raza, Head of Creative, from Naheed Supermarket; and Rabia Atlas Unit Head Proximity Payments, Arwa Saleem, Manager Proximity Payments, and Yahya Inam, Business Manager Proximity payments, from Bank Alfalah.

  • Dr. Alvi rejects banker’s plea in woman harassment case

    Dr. Alvi rejects banker’s plea in woman harassment case

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi, has rejected a petition filed by a banker for reinstatement into service, who was sacked for harassing a woman.

    The petitioner filed the appeal before the president against the decision of the Federal Ombudsman for Protection against Harassment of Women at Workplace which had modified the punishment of “dismissal from service” into “removal from service”.

    READ MORE: President Alvi rejects MCB Bank’s appeal in fraud case

    The President upheld the orders of the ombudsman noting that the petitioner was awarded the penalty of dismissal from service after inquiry wherein allegations of harassment stood established against him and the petitioner had failed to point out any illegality with the order of the learned ombudsman.

    According to the background of the case, Naeem Iqbal was appointed as Bank Cashier Grade-1 at Bank Alfalah Ltd, on February 01, 2006, and he was later promoted to Operation Officer, Counter Services Manager and Branch Operation Manager in 2010, 2014 and 2016 respectively.

    READ MORE: President Alvi orders two banks to pay victims of fraud

    Ms Habiba Rauf had filed a complaint before the management of the bank alleging acts of harassment against the accused.

    After inquiry, Iqbal was found guilty and, consequently, dismissed from the service by Bank Alfalah Ltd.

    After making a representation before the competent authority, he filed an appeal before the Woman Ombudsman who ordered that the appeal of the accused deserves outright dismissal, yet, on considering his long service and the fact that he has a large family, consisting of small kids and aged parents, leniency in punishment looks more appropriate and nearer to justice and fair play.

    READ MORE: President Alvi orders State Life to pay death insurance

    The ombudsman, therefore, modified the punishment of “dismissal from service” into “removal from service” and disposed of his appeal.

    Subsequently, Naeem Iqbal filed a representation with the President for reinstatement into service. While disposing of his appeal, the President noted that the petitioner was seeking setting aside of the order of the bank, dated March 18, 2019, and reinstatement into service purely on humanitarian grounds.

    The learned Ombudsman had already converted the penalty of dismissal to removal from service on such grounds.

    The President observed that since the petitioner had failed to point out any illegality with the order and no justification existed to interfere with the order of the Ombudsman, therefore, the instant representation is dismissed.

    READ MORE: Dr. Alvi opens property exhibition for UAE based NRPs

  • Bank Alfalah declares Rs10.48 billion after tax profit

    Bank Alfalah declares Rs10.48 billion after tax profit

    KARACHI: Bank Alfalah Limited on Monday declared Rs10.48 billion as after tax profit for nine months period ended September 30, 2021 as compared with Rs8.33 billion in the corresponding period of the last year, showing an increase of 26 per cent.

    The bank declared earnings per share of Rs5.9 for the period under review as compared with Rs4.69 EPS in the same period of the last year.

    Net interest income (NII) remained flat on YoY basis in January – September 2021 with solid deposit growth offsetting the impact of reduction in the benchmark rate by the Central Bank to support businesses during the pandemic.

    Non-markup income stood at Rs11.589 billion, up by 15.6 per cent. This is mainly attributable to the increase in fee income (25 per cent YoY), dividend income (65 per cent YoY) and gain on derivatives.

    Growth in fee income was on the back of exceptional home remittance and trade flows, combined credit and debit card spending, and strong growth in auto and home lending.

    Administrative expense during the nine months increased by 13.7 per cent YoY. Branch network expansion, with the addition of 19 branches during the year, marketing campaigns to support RDA and home remittance, and investment in technology led to an increase in costs.

    It is worth highlighting Bank Alfalah ranks amongst the top 5 banks in the Roshan Digital Account (RDA) space, with more than 10 per cent market share, also it is among the top three home remittance processing banks in the country under PRI initiative. Resultantly, cost to income ratio of the Bank surge to 58.5 per cent in the nine-month period ended September 30, 2021 from 52.6 per cent in the same period of the last year.

    During the first nine months of the current financial year, the bank booked provisions of Rs1.419 billion which include subjective downgrades. The Bank’s non-performing loans ratio improved to 3.7 per cent as compared to 4.3 per cent as at December 31, 2020, while the Non-Performing Loan (NPL) coverage ratio is 101 per cent.

    The Bank’s deposits closed at Rs 1.036 trillion at the end of Q3CY21, with YoY growth of 26.3 per cent compared to Q3’20. The increase was mainly due to the strong growth of 23.3 per cent in current accounts, which clocked in at Rs464.980 billion at quarter end. CA mix was recorded at 44.9 per cent.

    The bank’s advances book grew by 28.9 per cent YoY compared to September 2020. Part of this growth is government backed schemes for economic relief. At period end, the Bank’s gross advances to deposits ratio stood at 64.8 per cent, above the 50 per cent mark on which higher income tax rate becomes applicable.

    Bank Alfalah announces 21% growth in half year profit
  • Bank Alfalah announces 21% growth in half year profit

    Bank Alfalah announces 21% growth in half year profit

    KARACHI: Bank Alfalah Limited on Wednesday announced 21 per cent growth in earnings for the half year ended June 30, 2021.

    The net profit of the bank was at Rs7.02 billion for the first half as compared with net profit of Rs5.78 billion in the same half of the last year.

    The bank declared Rs3.94 as earnings per share (EPS) for the first half of 2021 as compared with the EPS of Rs3.25 in the same half of the last year.

    Analysts at Arif Habib Limited said that massive reductions in provisioning and quarterly rise in interest earned contributed to the profitability during the quarter.

    The bank announced a dividend of PKR 2.00/share.

    Net Interest Income of the bank settled at PKR 21.9 billion, decreasing 6 per cent YoY during 1HCY21 while rising 13 per cent QoQ. This quarterly growth could be attributed to volumetric growth.

    NFI increased 15 per cent YoY mainly on the back of Fee income which rose by 35 per cent YoY and Dividend income which increased by 79 per cent YoY. Quarterly jump was on account of 12 per cent jump in fee income and 50 per cent uptick in FX/derivatives income.

    Provisioning expenses for the bank came in at PKR 934 million during 2QCY21 taking total provisioning expenses to PKR 1.15bn during 1HCY21. Overall there has been a 76 per cent YoY reduction in provisioning, which could be due to improved outlook on the asset quality following the rebound in economic activity across the country leading to reversal in general provisioning. However this quarter saw a 4x jump QoQ which was on account of a provisioning charge against an Oil Marketing Company’s exposure as per management.

    Operating expenses rose 11 per cent YoY taking CIR to 58 per cent for 1HCY21 against 52 per cent same period last year (SPLY).

    Effective tax rate clocked in at 39 per cent for 1HCY21 vis-à-vis 42 per cent SPLY.

    SBP issues instructions on third party sales
  • FBR creates tax demand of over Rs667 million against Bank Alfalah

    FBR creates tax demand of over Rs667 million against Bank Alfalah

    KARACHI: Tax authorities have created an income tax demand of over Rs667 million against Bank Alfalah for default in payment and wrongly allocation of expenses.

    According to official documents made available on Wednesday, a tax office of Federal Board of Revenue (FBR) had issued notice to the bank for recovery of amount.

    The bank said in respect of tax years 2008, 2014, 2017 and 2019, the tax authorities had raised certain issues including default in payment of WWF, allocation of expenses to dividend and capital gains, dividend income from mutual funds not being taken under income from business and disallowance of Leasehold improvements resulting in additional demand of Rs. 667.746 million.

    As a result of appeal filed before Commissioner Appeals against these issues, relief has been provided for tax amount of Rs. 184.218 million appeal effect orders are pending. Bank has filed appeals on these issues which are pending before Commissioner Appeals and Appellate Tribunal.

    “The management is confident that these matters will be decided in favour of the bank.”

    The bank further said that the income tax assessments of the bank had been finalized up to and including tax year 2020. Matters of disagreement exist between the bank and tax authorities for various assessment years and are pending with the Commissioner of Inland Revenue (Appeals), Appellate Tribunal Inland Revenue (ATIR), High Court of Sindh and Supreme Court of Pakistan.

    These issues mainly relate to addition of mark up in suspense to income, taxability of profit on government securities, bad debts written off and disallowances relating to profit and loss expenses.

    Besides income tax, the bank has received an order from a tax authority wherein Sales tax and Further Tax amounting to Rs.8.601 million [excluding default surcharge and penalty] is demanded allegedly for non-payment of sales tax on certain transactions relating to accounting year 2016. The bank is in process of filing an appeal against this order in consultation with Tax Consultant.

    Furthermore, the bank has received orders from a provincial tax authority wherein tax authority demanded sales tax on banking services and penalty amounting to Rs.488.211 million (December 31, 2020: Rs.488.211 million) excluding default surcharge by disallowing certain exemptions of sales tax on banking services and allegedly for short payment of sales tax covering period from July 2011 to June 2014. Bank’s appeals against these orders are currently pending before Commissioner Appeals.

    ADDS REJOINDER BY BANK ALFALAH

    “Apropos the news item circulating in media about “FBR creates tax demand of Rs.667m against Bank Alfalah” is misperceived. It seems that Tax Contingency Note of the bank is taken as source. Tax contingency note is generally a part of financial statement of almost every bank wherein tax matters are disclosed for users of financial statements. In tax contingency note of the bank Rs.667m is only a number relates to tax matters of past many years and not a new tax demand which is created by FBR.”