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
