October 21, 2020 (MLN): Bank Alfalah Limited (BAFL) has announced its financial results for the nine months ended on September 30, 2020 wherein the bank has posted a profit after tax of Rs 8.66 billion (EPS: Rs 4.87) i.e. around 9 % lower than net profits of Rs 9.48 billion (EPS: Rs 5.35) reported in the corresponding period last year.
Alongside financial results, the Board of Directors of the bank announced an interim cash dividend for the 3rd quarter and Nine months period ended September 30, 2020 at Rs 2 per share i.e. 20%.
As per the financial statement issued by the bank to PSX, the bank’s net interest income went up by 3.38% YoY which is slightly lesser than expected as interest expenses increased by 12.53% YoY.
During the period under review, despite a reduction in fee income, non-funded income (NFI) showed a remarkable growth of 41% YoY on an account of a substantial increase of 41% YoY in FX income, capital gains of Rs 2.18 billion in 9MCY20 along with a 34% YoY increase in the share of profits from associates.
The major highlight is massive provisioning charges which showed a three-fold increase from Rs 2.012 billion to Rs 6.278 billion when compared to the same period last year, denting the financial health of the bank.
Consolidated Financial Results for the nine months ended September 30, 2020 ('000 Rupees) | |||
|---|---|---|---|
| Sep-20 | Sep-19 | % Change |
Mark-up/return/interest earned | 71,741,314 | 66,464,738 | 7.94% |
Mark-up/return/interest expensed | 37,280,646 | 33,129,999 | 12.53% |
Net mark-up/interest income | 34,460,668 | 33,334,739 | 3.38% |
Non-mark-up/interest income |
|
|
|
Fee and commission income | 4,948,377 | 5,291,578 | -6.49% |
Dividend income | 209,193 | 250,645 | -16.54% |
Foreign exchange income | 2,762,357 | 1,955,256 | 41.28% |
Gain/(loss) from derivatives | (59,636) | (62,305) | -4.28% |
Gain / (loss) on sale of securities | 2,185,561 | (436,665) | – |
Share of profit from associates | 527,075 | 391,955 | 34.47% |
Other income | 91,128 | 157,426 | -42.11% |
Total non-mark-up/interest income | 10,664,055 | 7,547,890 | 41.29% |
Total income | 45,124,723 | 40,882,629 | 10.38% |
Non-mark-up/interest expenses |
|
|
|
Operating expenses | 23,509,281 | 21,444,894 | 9.63% |
Workers welfare fund | 406,124 | 379,847 | 6.92% |
Other charges | 87,667 | 171,644 | -48.93% |
Total non-mark-up/interest expenses | 24,003,072 | 21,996,385 | 9.12% |
Profit before provisions | 21,121,651 | 18,886,244 | 11.84% |
Provisions and write offs – net | 6,278,815 | 2,012,435 | 212.00% |
Extra-ordinary/ unusual items | – | – |
|
Profit before taxation | 14,842,836 | 16,873,809 | -12.04% |
Taxation | 6,180,146 | 7,392,594 | -16.40% |
Profit after taxation | 8,662,690 | 9,481,215 | -8.63% |
Earnings per share – basic (rupees) – Restated | 4.87 | 5.35 | -8.97% |
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