Bank Alfalah declares Rs2.5/share dividend

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MG News | July 31, 2025 at 03:38 PM GMT+05:00

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July31, 2025 (MLN): Bank Alfalah Limited (PSX: BAFL) has released its financial results for the half-year ended June 30, 2025. The company declared a cash dividend of Rs2.50 per share (25%).

Profit After Tax (PAT) declined by 25.8% year-over-year (YoY) to Rs15.27 billion, compared to Rs20.60bn in the same period last year.

Consequently, Earnings per Share (EPS) fell to Rs9.68, down from Rs13.06, reflecting a 25.9% decrease YoY.

Despite the decline in profitability, Net Mark-up / Interest Income (NII) increased by 8.0% YoY to Rs67.58 billion, as the reduction in interest expenses (-38.3%) outpaced the decline in interest earned (-27.1%).

Non-Mark-up / Interest Income (NMI) also showed strong growth, rising 18.4% to Rs24.05bn. This improvement was led by a 160.7% surge in gains on securities, which reached Rs8.39bn, and a 25.5% increase in dividend income to Rs1.46bn.

Foreign exchange income remained stable at Rs5.29bn (up 0.9%), but fee and commission income dropped significantly by 23.7% to Rs7.65bn.

 The bank also reported a loss of Rs388.6m from derivatives, reversing a gain of Rs1.37bn in the previous year. Other income jumped 360.8% YoY to Rs874m.

As a result, total income for H1 2025 stood at Rs91.64bn, up 10.6% from Rs82.86bn in H1 2024.

However, profitability was constrained by a sharp increase in expenses. Non-Mark-up / Interest Expenses surged by 39.4% YoY to Rs56.81bn, largely driven by a 41.3% rise in operating expenses, which reached Rs55.98bn.

The Workers’ Welfare Fund contribution declined slightly to Rs822m, and other charges plummeted by 95.4% to just Rs9.56m.

Provisions for credit losses (net) decreased by 31.4% to Rs896.6m, providing some relief. Taxation was also down 7.6% YoY to Rs18.66bn.

Profit Before Tax (PBT) amounted to Rs33.93bn, a 16.8% decline from Rs40.80bn in the same period last year. While Bank Alfalah delivered growth in total income and market-related gains, rising costs and a fall in core fee-based income significantly eroded the bottom line.

Unconsolidated Statement of Profit and Loss Account For the six months ended June 30, 2025 (Rs.000)

Description

H1FY25

H1FY24

change%

Mark-up / Interest Earned

188,388,172

258,387,207

-27.1%

Mark-up / Interest Expensed

120,803,285

195,831,367

-38.3%

Net Mark-up Income

67,584,887

62,555,840

8.0%

Non-Mark-up / Interest Income

 

Fee & Commission Income

7,649,749

10,021,206

-23.7%

Dividend Income

1,455,503

1,159,804

25.5%

Foreign Exchange Income

5,289,700

5,242,394

0.9%

(Loss) / Income from Derivatives

388,566

1,373,514

-71.7%

Gain on Securities

8,394,351

3,220,379

160.7%

Net Gain/Loss on Derecognition

 

Other Income

874,229

189,716

360.8%

Total Non-Mark-up Income

24,052,098

20,307,013

18.4%

Total Income

91,636,985

82,862,853

10.6%

Non-Mark-up / Interest Expenses

 

Operating Expenses

55,978,382

39,629,066

41.3%

Workers' Welfare Fund

821,570

919,010

-10.6%

Other Charges

9,557

209,515

-95.4%

Total Non-Mark-up Expenses

56,809,509

40,757,591

39.4%

Profit Before Provisions

34,827,476

42,105,262

-17.3%

Credit Loss Allowance / Write-offs

896,645

1,306,853

-31.4%

Extraordinary Items

 

Profit Before Tax

33,930,831

40,798,409

-16.8%

Taxation

18,656,250

20,200,064

-7.6%

Profit After Tax

15,274,581

20,598,345

-25.8%

Earnings Per Share (Basic & Diluted)

9.68

13.06

-25.9%

 

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