Islamabad, July 31, 2025: Bank Alfalah Limited (BAFL) registered a Bank Alfalah profit decline of 31% year‑on‑year in profit after tax (PAT) for the first half of CY25, with net earnings totaling PKR 15.1 billion—a steep fall compared to the same period in 2024. This decline translated into earnings per share (EPS) of PKR 9.68, down from PKR 13.06 in 1H24, as noted in financial results formally approved by the Board of Directors on July 31, 2025
Despite the profit drop, the bank saw a 14% YoY increase in total income, reaching PKR 92.1 billion, driven by a robust 38% YoY surge in non-markup income. This growth in non-markup income, including fee, commission, and securities gains, helped offset challenges from a significant 1,000 basis point reduction in the policy rate, which pressured net interest income.
The bank’s strategic focus on growing low-cost current account deposits and optimizing balance sheet positions also supported revenue growth.
However, a sharp 305% YoY increase in provisions weighed heavily on profitability, reflecting heightened risk management amid evolving macroeconomic conditions. The cost-to-income ratio rose to 62%, driven by a 41% YoY increase in non-markup expenses, primarily due to higher operating costs from branch expansion and increased salaries.
The Board declared a second interim cash dividend of PKR 2.50 per share (25%), bringing the cumulative dividend for 2025 to PKR 5.00 per share (50%), up from 40% in SPLY. BAFL’s loan book grew 34.5% YoY to PKR 1,057.72 billion, with a focus on low-risk corporate lending and increased exposure to agriculture and SME segments. Deposits reached PKR 2.136 trillion, up 17.3% YoY, with a current account ratio of 40.1%.
Bank Alfalah’s Capital Adequacy Ratio stood at 17.67%, well above regulatory requirements, signaling strong financial stability. The bank remains committed to expanding its domestic footprint and investing in digital banking and sustainable practices to drive long-term shareholder value.
