Islamabad, Jan 30: Bank Alfalah has reported a consolidated profit-after-tax (PAT) of Rs39.9 billion for the year 2024, reflecting a 10% increase compared to Rs36.2 billion in 2023. The strong performance is driven by higher non-markup income, including a significant rise in commission income and substantial gains on securities.
According to the financial results disclosed to the Pakistan Stock Exchange (PSX) on Thursday, the bank’s earnings per share (EPS) increased to Rs25.27, compared to Rs23.15 in 2023.
Dividend Payout & Shareholder Returns
The Board of Directors (BoD) of Bank Alfalah has announced a final cash dividend of Rs2.5 per share (25%) for the year ending December 31, 2024. This is in addition to the three interim cash dividends of Rs2 per share each (20%), bringing the total dividend payout to 85% for 2024.
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Key Financial Highlights
✅ Net Interest Income: The bank’s core income grew slightly, reaching Rs126.8 billion in 2024, reflecting a 1% increase from Rs125.9 billion in 2023.
✅ Non-Interest Income: A standout performer, the bank’s non-markup income surged by 49%, reaching Rs45.78 billion in 2024, compared to Rs30.78 billion in 2023.
✅ Fee & Commission Income: Increased 9% year-on-year, reaching Rs17.96 billion in 2024.
✅ Gains on Securities: The bank recorded extraordinary gains of Rs14.02 billion, a massive jump from just Rs295.7 million in 2023.
✅ Total Income: Bank Alfalah’s total income rose to Rs172.56 billion, marking a 10% year-on-year growth.
Rising Expenses and Profit Before Tax
Despite the robust revenue growth, the bank also reported a 29% rise in non-markup expenses, which increased to Rs87.04 billion in 2024 from Rs67.67 billion in 2023. The operating expenses, a major contributor, surged 29% YoY, reaching Rs85.12 billion.
The profit before tax (PBT) rose by 8% to Rs85.2 billion, while tax expenses increased 6% to Rs45.4 billion, compared to Rs42.7 billion last year.
Conclusion
Bank Alfalah’s solid earnings growth, backed by strong non-interest income and securities gains, has reaffirmed its financial strength and market positioning. The bank’s dividend payouts and continued expansion in fee-based income streams signal a positive outlook for future performance. However, rising operating expenses and tax liabilities remain key areas to monitor in 2025.
