Bank Alfalah’s semi-annual profits fail to meet expectations

August 19, 2019 (MLN): Bank Alfalah Limited (BAFL) has announced a nearly 3% jump in its half yearly profit. The Bank’s consolidated net income for the period which ended on June 30, 2019 has been reported at Rs.6.2 billion while EPS is Rs.3.41 per share.

These results have fallen short of the market’s expectation of a 17% growth in net income, despite recording a 43% rise in foreign exchange income as predicted.  

In addition to this, the Bank’s Board of Directors has recommended an interim cash dividend at the rate of Rs.2 per share, i.e. 20%.

According to the financial results issued to the Pakistan Stock Exchange (PSX), BAFL’s Net mark-up/interest income expanded by 41% on a year-on-year basis, logging in at Rs.21.7 billion.

Meanwhile, the total non-mark-up/interest income (Rs.4.99 billion) shrunk by 11.7% YoY which brought the total income to Rs.26.6 billion which is 27% higher than that recorded last year.

On the other hand, BAFL’s total non-mark-up/interest expenses (Rs.14.3 billion) increased by 20% while tax expenses grew by 31% to Rs.5.2 billion.

Consolidated Financial Results for the half year ended June 30, 2019 ('000 Rupees)

 

Jun-19

Jun-18 (Restated)

% Change

Mark-up/return/interest earned

            41,629,106

              28,091,911

48.19%

Mark-up/return/interest expensed

            19,977,435

              12,735,920

56.86%

Net mark-up/interest income

            21,651,671

              15,355,991

41.00%

Non mark-up/interest income

 

 

 

Fee and commission income

               3,511,972

                3,143,344

11.73%

Dividend income

                  169,777

                    272,709

-37.74%

Foreign exchange income

               1,263,768

                    882,858

43.15%

Gain/(loss) from derivatives

                  (12,892)

                      30,796

 

Gain / (loss) on sale of securities

                  (64,198)

                1,182,052

 

Other income

                  127,209

                    147,794

-13.93%

Total non-mark-up/interest income

               4,995,636

                5,659,553

-11.73%

Total income

            26,647,307

              21,015,544

26.80%

Non mark-up/interest expenses

 

 

 

Operating expenses

            13,887,886

              11,665,122

19.05%

Workers welfare fund

                  255,384

                    192,202

32.87%

Other charges

                  109,292

                         1,154

9370.71%

Total non-mark-up/interest expenses

            14,252,562

              11,858,478

20.19%

Profit before provisions

            12,394,745

                9,157,066

35.36%

Provisions and write offs – net

                  979,828

                  (850,456)

 

Extra-ordinary/ unusual items

                              –  

                                –  

 

Profit before taxation

            11,414,917

              10,007,522

14.06%

Taxation

               5,205,958

                3,968,564

31.18%

Profit after taxation

               6,208,959

                6,038,958

2.82%

Earnings per share – basic (rupees)

                         3.50

                           3.41

2.64%

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Posted on: 2019-08-19T10:21:00+05:00

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