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Tag: Bank Alfalah

  • 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.”

  • Bank Alfalah announces Rs3.47bn net quarterly profit

    Bank Alfalah announces Rs3.47bn net quarterly profit

    KARACHI: Bank Alfalah Limited (BAFL) on Thursday announced Rs3.47 billion profit after tax for the quarter ended March 31, 2021.

    The net profit is 23 percent higher when compared with Rs2.82 billion in the same quarter of the last year.

    The bank also declared Rs1.95 as earnings per share (EPS) for the quarter ended March 31, 2021 as compared with Rs1.59 in the corresponding quarter of the last year.

    According to the financial results submitted to the Pakistan Stock Exchange (PSX) the provisions/write-offs of the banks was at Rs216 million during the first quarter of 2021 as compared with Rs1.52 billion in the corresponding quarter of the last year.

    Net Markup / Interest Income of the bank, however, fell to Rs10.32 billion for the quarter under review as compared with Rs11.78 billion in the corresponding quarter of the last year.

    Non mark-up/interest income of the bank increased to Rs3.83 billion for the quarter ended March 31, 2021 as compared with Rs2.71 billion in the corresponding quarter of the last year.

    The bank also made considerable income through gain on securities to Rs1.09 billion during the first quarter of 2021 as compared with loss of Rs46 million in the same quarter of the last year.

    Total income of the bank during the quarter fell marginally to Rs14.15 billion during first quarter of 2021 as compared with Rs14.49 billion in the corresponding period of the last year.

    Operating expenses of the bank remained flat at Rs8.45 billion as compared with Rs8.05 billion. Total expenses of BAFL rose to Rs8.57 billion during the first quarter of 2021 as compared with Rs8.2 billion in the corresponding quarter of the last year.

  • Bank Alfalah declares 18pc decline in annual profit

    Bank Alfalah declares 18pc decline in annual profit

    KARACHI: Bank Alfalah Limited on Wednesday declared 18 percent decline in its annual net profit for year ended December 31, 2020 despite healthy growth in gain on securities.

    The after tax profit of the bank fell to Rs10.47 billion for the year 2020 as compared with Rs12.69 billion in the preceding year.

    The net mark-up and interest income was remained flat at Rs44.7 billion for the year under review as compared with Rs44.89 billion a year ago.

    The posted growth in non-markup/interest income to Rs12.79 billion for the year 2020 as compared with Rs10.35 billion in the preceding year. Under this head, the gain on securities sharply increased to Rs2.28 billion as compared with Rs64.79 million.

    The bank paid Rs7.4 billion as tax for the year as compared with Rs9.68 billion paid tax liability in the preceding year.

    The earnings per share of the bank fell to Rs5.89 from last year’s Rs7.15.

    Final cash dividend for the year ended December 31, 2020 has been announced at Rs2 percent share i.e. 20 percent. This is in addition to the interim cash dividend already paid at Rs2 per share i.e. 20 percent.

  • Bank Alfalah declares 19.58% increase in annual profit

    Bank Alfalah declares 19.58% increase in annual profit

    KARACHI: Bank Alfalah Limited has reported a significant 19.58 percent increase in its annual profit for the calendar year 2019, driven by a substantial rise in mark-up income. According to the financial results released on Friday, the bank declared an after-tax profit of PKR 12.7 billion, compared to PKR 10.62 billion in the preceding year.

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  • Bank Alfalah CEO resigns

    Bank Alfalah CEO resigns

    KARACHI: Nauman Ansari has resigned from the post of Chief Executive Officer (CEO) and a director of Bank Alfalah Limited, a statement said on Friday.

    According to a notification submitted by the bank to Pakistan Stock Exchange (PSX) that Nauman Ansari, CEO Bank Alfalah Limited had tendered his resignation as a director and CEO of the bank due to personal reasons.

    “The board of directors of the bank in its meeting held on February 13, 2020 has resolved to accept the resignation of Nauman Ansari.”

    The vacancy of the post of CEO will be filled by the board of directors in due course, after completing all legal and regulatory formalities.

    “Until that time Nauman Ansari will continue performing his role as President/CEO of the bank,” it said.