KARACHI – April 17, 2025: Bank Alfalah Limited (BAFL) has posted a profit after tax of PKR 7.04 billion for the quarter ended March 31, 2025.
This translates to an Earnings Per Share (EPS) of PKR 4.46.
The bank’s Board of Directors has also approved an interim cash dividend of PKR 2.5 per share (25%).
This is up from 20% in the same period last year.
Resilience Amid Economic Shifts
Despite a drastic 1,000 basis point reduction in the policy rate since Q1 2024, the bank has managed to contain spread compression.
This resilience is attributed to growth in average current account (CA) deposits and strategic balance sheet positioning.
These factors enabled a 6% year-on-year (YoY) increase in net interest income.
Non-markup/interest income also showed strength, rising 13% YoY.
This came even amid pressure on fee-based income due to product-specific market dynamics.
Operating expenses climbed in line with branch expansion, employee compensation adjustments, and marketing efforts focused on remittances.
Deposit Growth and Lending Strategy
As of March 31, 2025, BAFL’s total deposits stood at PKR 2.019 trillion.
There is a sharpened focus on growing zero-cost CA deposits to optimize funding cost.
This led to a significant improvement in the deposit mix.
Gross advances declined to PKR 0.927 trillion.
This was primarily due to the maturity of short-term loans disbursed at the end of 2024.
Strong Capital Position
The bank continues to maintain robust capital discipline.
It reported a Capital Adequacy Ratio (CAR) of 17.64%.
This is well above the minimum regulatory threshold.
Strategic Outlook
Bank Alfalah reiterated its commitment to long-term value creation.
It remains focused on resilience, adaptability, and a disciplined strategic approach.
“With a strong focus on resilience, adaptability, and long-term value creation, the Bank is well-positioned to uphold shareholder confidence in a dynamic economic environment,” the management stated.
BAFL’s performance underscores its ability to navigate macroeconomic headwinds.
It continues delivering shareholder value while strengthening its operational footprint in Pakistan’s banking sector.
