BAFL: Profits soar 33% led by higher non-markup income, drop in provisions

By MG News | February 02, 2022 at 04:50 PM GMT+05:00

0:00

February 2, 2022 (MLN): Bank Alflah Limited (BAFL) continued its fashion of delivering strong profits as its net profits after tax during CY21 clocked in at Rs14.46 billion against the profits of Rs10.8 billion in the previous year, showing a growth of 33% YoY.

The surge in BAFL’s profitability was attributed to higher non-interest income and a significant decline in provision charges.

The growth in net profits translated into earnings per share of the bank which jumped to Rs8.12 from Rs6.1 in CY20.

Alongside financial results, the bank announced a cash dividend of Rs2 per share i.e., 20%, taking a full-year payout to Rs4 per share.

Going by the bank's financial statement, the 27% YoY growth in non-markup income came from a 25.6% YoY increase in fee and commission income, 21.4% YoY surge in foreign exchange income and 37.5% YoY jumped in gain on sale of securities.

On the other hand, net interest income of the bank remained largely flat as it inched up by only 3% YoY due to lower interest rate during CY21 however, in last quarter, the policy rate moved upwards, the impact of which is yet to fully reflect in the coming quarter.

On the provision side, the bank posted a 69.5% YoY decline in provision charges to Rs2.bn compared to Rs7.58bn worth of provisions CY20. The higher provision charges in CY20 were related to COVID related general provisions which were absent in CY21.

Going forward, the earnings of the bank are expected to improve as the impact of higher interest rates is yet to fully reflect on the asset side. Moreover, deposit growth has remained above peers (9MCY21: 26%), which would enhance the impact of margin expansion on future earnings, Ismail Iqbal Securities in its earnings report said.

Consolidated Financial Results for the year ended December 31, 2021 ('000 Rupees)
	Dec-21	Dec-20	% Change
Mark-up/return/interest earned	100,192,331	92,623,231	8.17%
Mark-up/return/interest expensed	54,148,073	47,928,757	12.98%
Net mark-up/interest income	46,044,258	44,694,474	3.02%
Non-mark-up/interest income
Fee and commission income	8,522,955	6,786,997	25.58%
Dividend income	492,297	313,526	57.02%
Foreign exchange income	4,127,984	3,398,242	21.47%
Gain/(loss) from derivatives	200,776	(21,366)	-1039.70%
Gain / (loss) on sale of securities	3,143,609	2,285,043	37.57%
Share of profit from associates	573,254	612,617	-6.43%
Other income	175,973	170,731	3.07%
Total non-mark-up/interest income	17,236,848	13,545,790	27.25%
Total income	63,281,106	58,240,264	8.66%
Non-mark-up/interest expenses
Operating expenses	36,538,606	31,618,668	15.56%
Workers’ welfare fund	498,436	494,432	0.81%
Other charges	25,520	94,741	-73.06%
Total non-mark-up/interest expenses	37,062,562	32,207,841	15.07%
Profit before provisions	26,218,544	26,032,423	0.71%
Provisions and write offs - net	2,311,856	7,589,269	-69.54%
Extra-ordinary/ unusual items	-	-
Profit before taxation	23,906,688	18,443,154	29.62%
Taxation	9,446,220	7,599,914	24.29%
Profit after taxation	14,460,468	10,843,240	33.36%
Earnings per share - basic (rupees) - Restated	8.12	6.10	33.11%

Copyright Mettis Link News

Related News

Name	Price/Vol	%Chg/NChg
KSE100	132,576.99 161.03M	-0.62% -826.20
ALLSHR	82,983.68 903.36M	-0.25% -204.38
KSE30	40,358.80 56.86M	-0.72% -292.66
KMI30	190,727.32 67.92M	-0.71% -1356.60
KMIALLSHR	55,698.48 457.08M	-0.27% -149.22
BKTi	36,242.06 11.15M	-0.50% -180.82
OGTi	28,323.42 10.71M	-0.40% -114.19

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	109,345.00	110,265.00 108,625.00	130.00 0.12%
BRENT CRUDE	70.32	70.71 69.61	0.17 0.24%
RICHARDS BAY COAL MONTHLY	97.50	0.00 0.00	1.45 1.51%
ROTTERDAM COAL MONTHLY	108.00	109.00 107.95	0.90 0.84%
USD RBD PALM OLEIN	998.50	998.50 998.50	0.00 0.00%
CRUDE OIL - WTI	68.53	68.94 67.70	0.20 0.29%
SUGAR #11 WORLD	16.58	16.61 16.08	0.45 2.79%