BAFL's Q3 earnings surpass expectations

MG News | October 17, 2024 at 12:38 PM GMT+05:00

0:00

October 17, 2024 (MLN): Bank Alfalah Limited's (PSX: BAFL) earnings for the quarter ended September 2024 surged past market expectations, reporting an unconsolidated profit after tax worth Rs13.03 billion. That translates to earnings per share of Rs8.26 against market forecasts of Rs7.07.

The dividend payout of Rs2 per share met the expectations of the majority of analysts in the market.

Earnings were a whopping 51% higher than the same quarter last year when the company recorded a profit after tax of Rs8.63bn.

In addition to higher income associated with interest and non-markup income, the company achieved this profit growth due to a nearly 90% reduction in its credit loss allowance.

Going by the income statement, the bank's net interest income rose to Rs33.77bn in Q3 CY24, reflecting a growth of 6.23% compared to SPLY.

Likewise, the bank's non-markup income spiked by 133.38% to Rs12.91bn in Q3 CY24.

The rise in non-markup income comes due to improved and expanded economic activity and customer base in the country.

Consequently, both fee and commission income and foreign exchange (FX) income grew.

The most crucial point to highlight was the remarkable turnaround in its securities income, which recorded a positive Rs6.18bn compared to a loss of Rs1.48bn in Q3 CY23.

On the expense side, the total non-markup expenses increased by 26.45% YoY to Rs20.58bn in Q3 CY24.

The increase was attributed to a substantial rise in the bank’s operating expenses and contribution to employee funds.

On the tax front, the bank paid Rs12.63bn, 52.97% higher than the amount paid in Q3 CY23.

Unconsolidated Financial Results for the quarter ended September 30, 2024 ('000 Rupees)
	Sep-24	Sep-23	% Change
Mark-up/return/interest earned	131,339,798	109,776,373	19.64%
Mark-up/return/interest expensed	97,565,387	77,982,313	25.11%
Net mark-up/interest income	33,774,411	31,794,060	6.23%
Non mark-up/interest income			-
Fee and commission income	3,938,031	3,804,269	3.52%
Dividend income	219,115	234,394	-6.52%
Foreign exchange income	2,421,013	2,412,544	0.35%
Gain/(loss) from derivatives	113,094	438,255	-74.19%
Gain /(loss) on sale of securities	6,183,824	(1,483,792)	-516.76%
Other income	32,103	124,981	-74.31%
Total non-mark-up/interest income	12,907,180	5,530,651	133.38%
Total income	46,681,591	37,324,711	25.07%
Non mark-up/interest expenses			-
Operating expenses	20,128,012	15,895,031	26.63%
Workers welfare fund	441,505	378,112	16.77%
Other charges	9,305	1,300	615.77%
Total non-mark-up/interest expenses	20,578,822	16,274,443	26.45%
Profit before provisions	26,102,769	21,050,268	24.00%
Credit loss allowance / provisions and write offs - net	439,194	4,162,498	-89.45%
Extra-ordinary/ unusual items	-	-	-
Profit before taxation	25,663,575	16,887,770	51.97%
Taxation	12,629,658	8,256,102	52.97%
Profit after taxation	13,033,917	8,631,668	51.00%
Earnings per share - basic (rupees) - Restated	8.26	5.47	-

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