April 22, 2021 (MLN): Bank Alfalah Limited (BAFL) has reported its 1QCY21 results today, where the Bank posted net profits of Rs3.42bn (EPS: Rs1.92/sh) compared to Rs2.9bn (EPS: PkR1.63) in the same quarter last year, up by around 18% YoY.
The deviation has mainly come from hefty capital gains booked during the quarter, while a sharp decline in provisioning and lower effective tax rate further bolstered profitability.
During the quarter, the Net Interest Income (NII) of the Bank declined by 12.3% YoY owing to lower interest income, while non-markup income surged by 38% YoY mainly due to capital gains of Rs1.1bn compared to the loss of Rs47.48mn in 1QCY20, and higher fee income (up by 14.4% YoY).
Provisioning expense declined by 85.8% YoY, which can be attributed to the buffer created through higher subjective provisioning during CY20. Furthermore, operating expenses of the Bank posted a 5% YoY growth, this led to the cost to income ratio to 60% compared to 56% in SPLY.
On the tax front, the effective taxation of the Bank improved to 37% compared to 41% in SPLY which can be ascribed to a deferred tax adjustment.
|
Consolidated Financial Results for the quarter ended March 31, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-21 |
Mar-20 |
% Change |
|
Mark-up/return/interest earned |
21,389,307 |
25,907,916 |
-17.44% |
|
Mark-up/return/interest expensed |
11,064,172 |
14,127,997 |
-21.69% |
|
Net mark-up/interest income |
10,325,135 |
11,779,919 |
-12.35% |
|
Non-mark-up/interest income |
|
|
|
|
Fee and commission income |
1,943,395 |
1,697,809 |
14.46% |
|
Dividend income |
132,720 |
87,056 |
52.45% |
|
Foreign exchange income |
657,996 |
1,055,601 |
-37.67% |
|
Gain/(loss) from derivatives |
49,113 |
(61,236) |
-180.20% |
|
Gain / (loss) on sale of securities |
1,094,391 |
(47,484) |
– |
|
Share of profit from associates |
38,345 |
107,710 |
-64.40% |
|
Other income |
38,127 |
22,066 |
72.79% |
|
Total non-mark-up/interest income |
3,954,087 |
2,861,522 |
38.18% |
|
Total income |
14,279,222 |
14,641,441 |
-2.47% |
|
Non-mark-up/interest expenses |
|
|
|
|
Operating expenses |
8,509,541 |
8,094,266 |
5.13% |
|
Worker’s welfare fund |
109,584 |
110,122 |
-0.49% |
|
Other charges |
6,535 |
41,090 |
-84.10% |
|
Total non-mark-up/interest expenses |
8,625,660 |
8,245,478 |
4.61% |
|
Profit before provisions |
5,653,562 |
6,395,963 |
-11.61% |
|
Provisions and write offs – net |
216,168 |
1,527,594 |
-85.85% |
|
Extra-ordinary/ unusual items |
– |
– |
|
|
Profit before taxation |
5,437,394 |
4,868,369 |
11.69% |
|
Taxation |
2,015,158 |
1,975,606 |
2.00% |
|
Profit after taxation |
3,422,236 |
2,892,763 |
18.30% |
|
Earnings per share – basic (rupees) – Restated |
1.92 |
1.63 |
17.79% |
Copyright Mettis Link News
40818
