Bank Alfalah achieves 10.47% profit growth in 2024

January 30, 2025 (MLN): Bank Alfalah Limited (PSX: BAFL) has posted earnings for the year ended December 31, 2024, with a profit after tax of Rs39.86 billion (EPS: Rs24.30), representing a 10.47% increase compared to last year's profit of Rs36.09bn (EPS: Rs23.12).

The company has declared a final cash dividend of Rs2.5 per share, representing 25%, for the year ended December 31, 2024.

This is in addition to the three interim cash dividends of 20% each, bringing the total dividend payout to 85% for the year.

The increase in profit is largely attributed to a rise in the bank's Net Mark-up/Interest Income (NII), which grew by 0.66% to Rs126.78bn from Rs125.95bn in 2023.

This marginal increase in NII was driven by an increase in interest-earning assets, with mark-up/return/interest earned rising by 23.09% to Rs507.12bn, compared to Rs412.01bn in the previous year.

In terms of Non-Mark-up/Interest Income (NMI), the bank saw a remarkable 48.71% YoY increase, reaching Rs45.78bn, up from Rs30.78bn in 2023.

This growth was primarily driven by a substantial rise in Fee and Commission Income (up 9.15% to Rs17.96bn), Dividend Income (up 29.83% to Rs1.33bn), and an extraordinary gain of 4640.99% in Securities (Rs14.02bn).

However, the Share of Profit from Associates saw a decline of 27.07% to Rs1.23bn compared to the previous year.

On the expense side, Total Non-Mark-up/Interest Expenses increased by 28.62% to Rs87.04bn, up from Rs67.67bn in the previous year.

The increase was largely attributed to a 29.60% rise in Operating Expenses, which stood at Rs85.12bn, compared to Rs65.68bn in 2023.

The bank also incurred a provision expense of Rs271.23mn during the review period, in stark contrast to Rs10.32bn in provisions last year.

On the taxation front, Bank Alfalah paid Rs45.38bn in taxes, which is a 6.41% increase compared to the Rs42.65bn paid last year.

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