Bank Alfalah 9M profit jumps 42% to Rs30bn

October 22, 2026 (MLN): Consolidated profit after taxation of Bank Alfalah Limited (PSX: BAFL) rose 41.94% year-on-year to Rs30.37bn for the nine months ended September 30, 2026, compared with Rs21.40bn in the same period last year.

Basic and diluted earnings per share (EPS) increased 42.04% to Rs9.63 from Rs6.78 in the corresponding period last year.

Along with the results, the bank announced a third interim cash dividend of Rs1.5 per share (30%) for the quarter and nine months ended September 30, 2026. This is in addition to the two interim cash dividends of 30% each already paid, taking the cumulative payout to 90%.

The growth was driven by higher net interest income, a 74% jump in gains on securities, a reversal of credit loss allowance and the absence of losses from discontinued operations. Higher operating expenses and a heavier tax charge partly offset the gains.

Mark-up/return/interest earned fell 3.31% to Rs259.80bn from Rs268.68bn, while interest expensed declined faster, by 8.49%, to Rs154.95bn from Rs169.33bn. Net mark-up/return/interest income rose 5.54% to Rs104.85bn from Rs99.35bn.

Non-markup income was the key contributor.

Gain on securities rose 74.07% to Rs17.51bn from Rs10.06bn. Foreign exchange income grew 30.57% to Rs11.67bn from Rs8.94bn, fee and commission income increased 12.59% to Rs13.46bn from Rs11.96bn, and income from derivatives climbed 62.81% to Rs1.52bn from Rs933.80m.

Dividend income fell 28.44% to Rs1.44bn from Rs2.02bn. Share of profit from associates plunged 88.64% to Rs138.95m from Rs1.22bn, and other income dropped 71.96% to Rs263.45m from Rs939.55m.

As a result, total non-markup income grew 27.56% to Rs46.01bn from Rs36.07bn, lifting total income 11.40% to Rs150.86bn from Rs135.42bn.

Operating expenses increased 4.17% to Rs87.95bn from Rs84.42bn, while other charges more than tripled to Rs46.18m from Rs13.50m. Total non-markup expenses grew 4.62% to Rs89.48bn from Rs85.53bn.

Profit before credit loss allowance and provisions climbed 23.02% to Rs61.37bn from Rs49.89bn. A net reversal of credit loss allowance, provisions and write-offs of Rs3.15bn, against a net charge of Rs1.95bn last year, took profit before taxation from continuing operations up 34.58% to Rs64.52bn from Rs47.94bn.

Taxation rose 29.02% to Rs34.15bn from Rs26.47bn, leaving profit after taxation from continuing operations at Rs30.37bn, up 41.44% from Rs21.47bn.

The bank booked no loss from discontinued operations, compared with a loss of Rs75.39m last year. EPS from continuing operations rose 41.41% to Rs9.63 from Rs6.81.

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