BAFL sees 29% decline in quarterly profit after tax

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.

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