Bank Alfalah achieves 10.47% profit growth in 2024

MG News | January 30, 2025 at 02:14 PM GMT+05:00

0:00

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.

Consolidated Financial Results for the year ended December 31, 2024 ('000 Rupees)
	Dec-24	Dec-23	% Change
Mark-up/return/interest earned	507,120,276	412,005,030	23.09%
Mark-up/return/interest expensed	380,338,339	286,053,140	32.96%
Net mark-up/interest income	126,781,937	125,951,890	0.66%
Non mark-up/interest income
Fee and commission income	17,959,812	16,454,744	9.15%
Dividend income	1,328,035	1,022,878	29.83%
Foreign exchange income	9,545,077	9,222,689	3.50%
Gain/(loss) from derivatives	1,368,096	1,760,669
Gain on sale of securities	14,021,158	295,743	4640.99%
Share of profit from associates	1,232,883	1,690,573	-27.07%
Other income	320,195	333,846	-4.09%
Total non-mark-up/interest income	45,775,256	30,781,142	48.71%
Total income	172,557,193	156,733,032	10.10%
Non mark-up/interest expenses
Operating expenses	85,119,044	65,676,322	29.60%
Workers welfare fund	1,697,014	1,714,807	-1.04%
Other charges	222,567	279,412	-20.34%
Total non-mark-up/interest expenses	87,038,625	67,670,541	28.62%
Profit before provisions	85,518,568	89,062,491	-3.98%
Provisions and write offs - net	271,228	10,324,754
Extra-ordinary/ unusual items	-	-
Profit before taxation	85,247,340	78,737,737	8.27%
Taxation	45,384,044	42,651,377	6.41%
Profit after taxation	39,863,296	36,086,360	10.47%
Earnings per share - basic (rupees) - Restated	24.30	23.12	5.10%

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