BAFL declares dividend as profit surges 53% in Q2 CY24

August 01, 2024 (MLN): Bank Alfalah Limited (PSX: BAFL) has revealed its financial statement today for the quarter year ended June 30, 2024, as per which the bank posted a profit worth Rs12 billion [EPS: Rs7.59], depicting a surge of 52.8% YoY, compared to Rs7.85bn [EPS: Rs4.57] in the same period last year (SPLY).

Along with the financial results, the board of directors of BAFL has also announced an interim cash dividend for the period ended June 30, 2024, at Rs2 per share i.e. 20%.

The income statement reveals that the bank witnessed a marginal drop of 1.9% in its net interest income (NII) to stand at Rs30.62bn.

This contrasts with the previous financials, where Net Interest Income (NII) was the primary source of profits. This quarter, NII has decreased due to monetary easing by the central bank.

However, BAFL was able to book higher profit due to a 52.9% YoY growth in Non-Markup Income (NMI) of Rs12.25bn in Q2 2024.

NMI spiked due to a significant rise in all subcomponents, including fee and commission income, foreign exchange income, and gains from derivatives.

The total non-interest expenses increased by 23.5% to Rs20.32bn in Q2 CY24 compared to Rs16.45bn in Q2 CY23.

The increase was attributed to the massive jump of 24.59% YoY in operating expenses.

Furthermore, the bank incurred a provision expense of Rs25.2m during the review period compared to the Rs4.48bn reversal in the corresponding period last year.

On the tax front, the bank paid Rs10.58bn, 12.86 higher than the amount paid in Q2 CY23.

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