Bank Alfalah Reports Profit before tax of Rs. 4.290 Billion, Increasing by 13.1%!

Bank Alfalah

The Board of Directors of Bank Alfalah Limited held a meeting on April, 24th 2017 approving the bank’s first quarter financial statements (un-audited) ending on March 31st 2017. The bank earned Profit before tax of Rs. 4.290 billion for Q1, increasing from the last year’s same period by 13.1%.

EPS was noted to be at Rs. 1.75 compared to Rs. 1.55 reported for the last matching quarter.

In spite of the encounters that continued due to a constantly low interest rate rule and relatively lower yields on PIBs, the Bank was able to raise its Net Interest Income by 2.3% as in contradiction of the matching prior period. This was mainly in accordance to volumetric progress as the Alfahah managed to increase its loan book by an inspiring 16%, on a year on year base.

The Bank’s income of Non-mark up also bettered by 8.4%, as in contradiction of the conforming quarter, with Core Fee, Commission and Brokerage income, as well as foreign exchange income increasing by 24.3% and 24.8% correspondingly.

Enhanced recoveries compared to Non-Performing Loans, ensuing from strong recovery efforts, led to a encouraging influence on net provisioning, which further helped bottom line success. Administrative Expenses sustained to be achieved, proving a growth of less than 2% as contrary to the prior conforming period.

Total deposits were posted at Rs. 600 Billion, reducing by 6 percent from the last year levels – depicting the Bank’s ongoing efforts to cut down high cost deposits, owing to an enhanced CASA mix of 85% at March 2017, as well as a discount in the general cost of funds.

With these earnings, the Bank’s ADR stands enhanced by 66%. At 31st March 2017, the Bank’s NPLs ratio remains at 4.65%, improved than the industry average, although the Bank’s NPL coverage now stands better at 88.3%.

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