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Net Interest Income lifts Bank Alfalah’s bottom line by 18.6% YoY in CY19

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February 14, 2020 (MLN): Bank Alfalah Limited (BAFL) has announced its financial results for the year ended December 31, 2019. As per results, the bank has posted its consolidated net earnings of Rs 13.03 billion (EPS: 7.35) i.e. 18.6% higher than the same period of last year.

The key reason for the bank’s profitability was higher net interest income, up by 40.52% YoY.

During the period under review, bank’ interest income surged by 55% YoY, whereas, interest expenses also increased by roughly 72% YoY, thereby restricting growth in bank’s net interest income (NII) to 40.52% YoY during CY19.

On the other hand, Non-funded income (NFI) of the bank dropped by 3%YoY due to a massive decline in capital gains (down by 91%YoY). Moreover, operating expenses rose by 18% YoY to stand at RS 29.20 billion whereas tax expense increased 37% YoY in CY19.

Alongside financial results, the board of directors has announced a final cash dividend for the year ended Dec 31, 2019, at Rs 2 per share i.e. 20%. This is in addition to interim cash dividend already paid at Rs 2 per share i.e. 20%.

Other than this, the board of directors, in a meeting, has discussed a prospective opportunity to expand and develop its merchant acquiring business (comprising, inter alia, its POS and online acquiring division) by potentially entering into a joint venture arrangement with, inter alias, Wemsol (Private) Limited.

Consequently, the Board of Directors authorized the Bank to explore the feasibility/viability of entering into a joint venture/arrangement/collaboration with a third party(ies), including approving a draft Memorandum of Understanding to be entered into with Wemsol in this respect.

Furthermore, the Bank has also been authorized to liaise with regulatory authorities, appoint advisors, evaluators and consultants for evaluating the feasibility, including due diligence and valuation, finalizing the structure, along with preparing necessary documents/drafts for the consideration of the Board of Directors.


Consolidated Financial Results for the year ended December 31, 2019 ('000 Rupees)




% Change

Mark-up/return/interest earned




Mark-up/return/interest expensed




Net mark-up/interest income




Non mark-up/interest income




Fee and commission income




Dividend income




Foreign exchange income




Gain/(loss) from derivatives



Gain on sale of securities




Share of profit from associates




Other income




Total non-mark-up/interest income




Total income




Non mark-up/interest expenses




Operating expenses




Workers welfare fund




Other charges




Total non-mark-up/interest expenses




Profit before provisions




Provisions and write offs – net



Extra-ordinary/ unusual items



Profit before taxation








Profit after taxation




Earnings per share – basic (rupees) – Restated





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Posted on: 2020-02-14T11:04:00+05:00