BAFL sees 29% decline in quarterly profit after tax

MG News | April 17, 2025 at 02:29 PM GMT+05:00

0:00

April 17, 2025 (MLN): Bank Alfalah Limited (PSX: BAFL) has reported its financial results for the quarter ended March 31, 2025, reporting a Profit After Tax (PAT) of Rs7.07 billion (EPS: Rs4.49), reflecting a decline of 28.70% compared to Rs9.92bn (EPS: Rs6.31) in the same period last year.

The bank has declared an interim cash dividend at the rate of Rs. 2.5 per share, i.e., 25%.

The drop in profit is primarily due to a significant increase in non-mark-up/interest expenses, which rose 37.97% YoY to Rs27.57bn from Rs19.98bn in Q1 2025.

This increase was largely driven by a 40.39% jump in operating expenses, which stood at Rs27.16bn, up from Rs19.35bn.

On the income side, the bank’s Net Mark-up/Interest Income (NII) grew modestly by 6.34% to Rs33.24bn, compared to Rs31.26bn in Q1 2025.

This was supported by a 26.78% decrease in interest earned, which was offset by a sharper 37.28% reduction in interest expenses.

In terms of Non-Mark-up/Interest Income (NMI), the bank recorded a healthy 13.83% YoY growth, reaching Rs9.46bn, up from Rs8.31bn in the same period last year.

This was mainly driven by strong gains in Other Income (up 1104.12%), Income from Derivatives (up 102.51%), and Dividend Income (up 195.83%).

Additionally, the bank saw a notable 845.71% increase in Gain on Securities.

However, Fee and Commission Income declined by 23.60% to Rs3.66bn, and Foreign Exchange Income fell by 5.52% to Rs2.14bn.

The Share of Profit from Associates also registered a minor dip of 7.18%.

The bank booked a provision expense of Rs467.75m compared to Rs206.79m last year, representing a 126.19% increase.

Taxation decreased by 13.63% YoY to Rs8.53bn from Rs9.88bn in Q1 2025.

Consolidated Condensed Interim Statement of Profit and Loss (Un-audited) (Rupees in '000)
Description	Mar-25	Mar-24	%Change
Mark-up / return / interest earned	95,123,561	129,922,478	-26.78%
Mark-up / return / interest expensed	(61,882,118)	(98,663,719)	-37.28%
Net mark-up / return / interest income	33,241,443	31,258,759	6.34%
Non Mark-Up / Interest Income
Fee and commission income	3,664,470	4,796,181	-23.60%
Dividend income	880,222	297,545	195.83%
Foreign exchange income	2,143,675	2,268,840	-5.52%
Income from derivatives	1,102,480	544,412	102.51%
Gain on securities	621,549	65,723	845.71%
Net gains / (loss) on derecognition of financial assets
Share of profit from associates	255,144	274,893	-7.18%
Other income	795,536	66,068	1104.12%
Total non mark-up / interest income	9,463,076	8,313,642	13.83%
Total Income	42,704,519	39,572,401	7.91%
Non Mark-Up / Interest Expenses
Operating expenses	27,161,486	19,346,678	40.39%
Workers’ welfare fund	400,108	425,656	-6.00%
Other charges	5,901	208,643	-97.17%
Total non mark-up / interest expenses	27,567,495	19,980,977	37.97%
Profit before credit loss allowance / provisions	15,137,024	19,591,424	-22.74%
Reversal of credit loss allowance / provisions – net	(467,750)	(206,794)	126.19%
Extraordinary / unusual items
Profit before taxation	15,604,774	19,798,218	-21.18%
Taxation	8,532,085	9,878,731	-13.63%
Profit after taxation	7,072,689	9,919,487	-28.70%
Profit / (Loss) Attributable To
Equity holders of the Holding Company	7,075,644	9,945,989	-28.86%
Basic and Diluted Earnings Per Share	4.49	6.31	-28.84%

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