Tag: Bank Alfalah

KARACHI: Bank Alfalah has declared 25 increase in net profit for the half year ended June 30, 2022.

According to unconsolidated financial results submitted to Pakistan Stock Exchange (PSX) on Friday, the bank declared profit after tax at Rs8.70 billion for the half year ended June 30, 2022 as compared with Rs6.93 billion in the same half of the last year.

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The bank also announced earnings per share at Rs4.9 for the half year (January – June) 2022 as compared with Rs3.90 EPS in the same half of the last year.

The board of directors of Bank Alfalah met on July 28, 2022 and recommended an interim cash dividend for the half year ended June 30, 2022 at the rate of Rs2.50 per share i.e. 25 per cent.

Analysts at Insight Research said that the result remained below from expectations of rs2.8 per share, primarily due to higher both provisions charge and effective tax rate during the quarter.

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Net Interest Income remained in line with estimates to clocked in at Rs17.8 billion (up by 53 per cent/25 per cent YoY/QoQ), which is attributable to repricing of assets as bank’s investment book is fully geared up for current monetary policy settings.

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Non-markup income improved significantly in 2QCY22 to reached Rs6.5 billion (up 57 per cent/49 per cent YoY/QoQ) mainly due to massive foreign exchange income, which is clocked in at Rs3.4 billion amid better market share in remittances/trade and volatility in FX market. Whereas, fee income remained in-line with the estimates.

On the provision front, bank posted a net charge of Rs3.6 billion vs. expectation of Rs0.8 billion, as bank raised its general provisioning due concern on the economic slowdown.

Effective tax rate (ETR) remained above from estimates of 54 per cent to clock in at 59.2 per cent.

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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).

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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.

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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.

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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.

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.

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.