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BAFL’s profit declines by around 8% YoY in 3QFY24, issues Rs2 dividend

Bank Alfalah achieves highest 'AAA' rating from PACRA
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April 24, 2024(MLN): Bank Alfalah Limited (PSX: BAFL) has recorded a profit of Rs9.93 billion [EPS: Rs6.31] for the quarter ended March 31, 2024, reflecting a decline of around 8% YoY compared to the previous year's profit of Rs10.77bn [EPS: Rs6.83].

Despite this drop, the Board of Directors (BoD) has recommended an interim cash dividend of Rs2 per share.

Going by the income statement, the bank’s net interest income (NII) increased by 10.29% YoY to stand at Rs30.79bn IN 3QFY24, compared to SPLY.

The surge in NII is due to a jump in interest-earning (Rs128.65bn), up by 70.17%YoY.

The markup expense recorded by BAFL was 2.05 times higher than in 3QFY23, but the increase in interest earnings successfully offset those costs.

During the period under review, the bank’s Non-Markup Income (NMI) also rose by 19.51% YoY to Rs8.08bn, owing to a significant rise in fee and commission income, Foreign Exchange Income, and gain from derivatives to clock in at Rs4.53bn, Rs2.3bn, and Rs297.55m, respectively.

On the expense side, the total non-interest expenses increased by 26.71% YoY to Rs19.16bn in 3QFY24 compared to Rs15.12bn in 3QFY23.

The increase was attributed to the massive jump of 25.92% YoY in operating expenses from Rs14.71bn in 3QFY23 to Rs18.52bn in 3QFY24.

In addition, the bank incurred a provision expense of Rs112.43M during the review period compared to a provision reversal of Rs521.78m in the corresponding period last year.

On the tax front, the bank paid Rs9.89bn, 19.72% YoY higher than the amount paid in 3QFY23.

Consolidated Financial Results for the quarter ended March 31, 2024 ('000 Rupees)
  Mar-24 Mar-23 % Change
Mark-up/return/interest earned 128,652,122 75,600,919 70.17%
Mark-up/return/interest expensed 97,866,549 47,687,134 105.23%
Net mark-up/interest income 30,785,573 27,913,785 10.29%
Non mark-up/interest income      
Fee and commission income 4,534,694 3,449,508 31.46%
Dividend income 297,545 207,950 43.08%
Foreign exchange income 2,303,621 3,324,964 -30.72%
Gain/(loss) from derivatives 544,412 (100,717) -640.54%
Gain /(loss) on sale of securities 65,723 (312,459)
Share of profit from associates 274,893 123,158 123.20%
Other income 54,135 64,201 -15.68%
Total non-mark-up/interest income 8,075,023 6,756,605 19.51%
Total income 38,860,596 34,670,390 12.09%
Non mark-up/interest expenses      
Operating expenses 18,523,925 14,710,756 25.92%
Workers welfare fund 425,656 397,746 7.02%
Other charges 208,643 10,973 1801.42%
Total non-mark-up/interest expenses 19,158,224 15,119,475 26.71%
Profit before provisions 19,702,372 19,550,915 0.77%
Credit loss allowance / provisions and write offs – net (112,425) 521,775 -121.55%
Extra-ordinary/ unusual items  
Profit before taxation 19,814,797 19,029,140 4.13%
Taxation 9,886,855 8,258,450 19.72%
Profit after taxation 9,927,942 10,770,690 -7.82%
Earnings per share – basic (rupees) – Restated 6.31 6.83

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Posted on: 2024-04-24T13:44:45+05:00