February 01, 2024(MLN): Bank Alfalah Limited (PSX: BAFL) achieved its highest-ever profitability for the year ending 2023, with a recorded profit of Rs36.09 billion [EPS: Rs23.15], compared to the previous year's profit of Rs18.4bn[EPS: Rs10.38] reported in the same period last year (SPLY).
It is important to mention that along with record earnings, BAFL also declared its highest ever Dividend per Share (DPS).
The Board of Directors (BoD) has recommended a final cash dividend for 2023 at Rs5- per share i.e. 50%.This is in addition to the Interim Cash Dividend already paid at Rs3/- per share i.e. 30%
Going by the income statement, the bank witnessed an increase of 63.21% in its net interest income (NII) to stand at Rs125.95bn, compared to SPLY. The surge in NII is due to a jump in interest-earning (Rs412bn), up by 92.43%YoY.
During the period under review, the bank’s Non-Markup Income (NMI) also rose by 31.94% YoY to Rs30.09bn, owing to a significant rise in fee and commission income, Foreign Exchange Income, and gain from derivatives to clock in at Rs15.43bn, Rs9.55bn and Rs1.76bn.
On the expense side, the total non-interest expenses increased by 31.76% to Rs66.98bn in 2023 compared to Rs50.83bn in 2022.
The increase was attributed to the massive jump of 30.23% YoY in operating expenses from Rs49.9bn in 2022 to Rs64.98bn in 2023.
In addition, the bank incurred a provision expense of Rs10.32bn during the review period compared to Rs12.47bn in the corresponding period last year.
On the tax front, the bank paid Rs42.65bn, 2.33x higher than the amount paid in 2022.
| Consolidated Financial Results for the year ended December 31, 2023 ('000 Rupees) | |||
|---|---|---|---|
| Dec-23 | Dec-22 | % Change | |
| Mark-up/return/interest earned | 412,005,030 | 214,106,020 | 92.43% |
| Mark-up/return/interest expensed | 286,053,140 | 136,933,108 | 108.90% |
| Net mark-up/interest income | 125,951,890 | 77,172,912 | 63.21% |
| Non mark-up/interest income | |||
| Fee and commission income | 15,428,789 | 11,231,877 | 37.37% |
| Dividend income | 1,022,878 | 1,091,320 | -6.27% |
| Foreign exchange income | 9,554,818 | 9,218,628 | 3.65% |
| Gain/(loss) from derivatives | 1,760,669 | 331,578 | 431.00% |
| Gain /(loss) on sale of securities | 295,743 | (65,024) | – |
| Share of profit from associates | 1,690,573 | 669,831 | 152.39% |
| Other income | 333,846 | 325,971 | 2.42% |
| Total non-mark-up/interest income | 30,087,316 | 22,804,181 | 31.94% |
| Total income | 156,039,206 | 99,977,093 | 56.07% |
| Non mark-up/interest expenses | |||
| Operating expenses | 64,982,495 | 49,897,939 | 30.23% |
| Workers welfare fund | 1,714,807 | 907,442 | 88.97% |
| Other charges | 279,412 | 27,178 | 928.08% |
| Total non-mark-up/interest expenses | 66,976,714 | 50,832,559 | 31.76% |
| Profit before provisions | 89,062,492 | 49,144,534 | 81.23% |
| Provisions and write offs – net | 10,324,754 | 12,467,133 | -17.18% |
| Extra-ordinary/ unusual items | – | – | |
| Profit before taxation | 78,737,738 | 36,677,401 | 114.68% |
| Taxation | 42,651,377 | 18,279,937 | 133.32% |
| Profit after taxation | 36,086,361 | 18,397,464 | 96.15% |
| Earnings per share – basic (rupees) – Restated | 23.15 | 10.38 | 123.03% |
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Posted on: 2024-02-01T14:04:11+05:00
