Bank Alfalah registers a 9% YoY fall in profits during 9MCY20

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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Posted on: 2020-10-21T14:55:00+05:00

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