April 27, 2020 (MLN): Bank Alfalah Limited has announced the results for the quarter ended March 31, 2020, which show a Profit after Tax figure of Rs. 2.89 billion (EPS: 1.63), i.e. around 8.6% lower than the figures recorded in the same period of last year.
The Bank’s Net Interest Income showed a mere growth of 5.5%, whereas the total Non-Interest Income depicted a rise of 21%. The substantial rise in the latter was a result of aggressive growth in FX income by 1.2x, as well as an increase in the share of profit from associates by 1.45x.
On the contrary, the total non-interest expenses grew by 19.6% due to the increase in operating expenses by 19.7% and non-core expenses by 27.7x.
The most notable change in value was seen in provisions and write-offs, which depicted a 2.4x increase. According to a report by Arif Habib, this increase was a result of higher credit provisioning as well as impairment charges arising on the bank’s equity portfolio.
Financial Results for the quarter ended March 31, 2020 ('000 Rupees) |
|||
---|---|---|---|
Mar-20 |
Mar-19 |
% Change |
|
Mark-up/return/interest earned |
25,907,916 |
20,760,594 |
24.79% |
Mark-up/return/interest expensed |
14,127,997 |
9,597,169 |
47.21% |
Net mark-up/interest income |
11,779,919 |
11,163,425 |
5.52% |
Non-mark-up/interest income |
|||
Fee and commission income |
1,697,809 |
1,708,242 |
-0.61% |
Dividend income |
87,056 |
75,786 |
14.87% |
Foreign exchange income |
1,055,601 |
477,970 |
120.85% |
Gain/(loss) from derivatives |
(61,236) |
3,403 |
|
Gain / (loss) on sale of securities |
(47,484) |
(25,384) |
87.06% |
Share of profit from associates |
107,710 |
43,933 |
145.17% |
Other income |
22,066 |
82,160 |
-73.14% |
Total non-mark-up/interest income |
2,861,522 |
2,366,110 |
20.94% |
Total income |
14,641,441 |
13,529,535 |
8.22% |
Non-mark-up/interest expenses |
|||
Operating expenses |
8,094,266 |
6,759,316 |
19.75% |
Workers welfare fund |
110,122 |
131,022 |
-15.95% |
Other charges |
41,090 |
1,427 |
2779.47% |
Total non-mark-up/interest expenses |
8,245,478 |
6,891,765 |
19.64% |
Profit before provisions |
6,395,963 |
6,637,770 |
-3.64% |
Provisions and write offs – net |
1,527,594 |
446,076 |
242.45% |
Extra-ordinary/ unusual items |
– |
– |
|
Profit before taxation |
4,868,369 |
6,191,694 |
-21.37% |
Taxation |
1,975,606 |
3,027,502 |
-34.74% |
Profit after taxation |
2,892,763 |
3,164,192 |
-8.58% |
Earnings per share – basic (rupees) – Restated |
1.63 |
1.79 |
-8.94% |
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