July 29, 2022 (MLN): Bank Alfalah Limited (BAFL) has announced its 1HCY22 result, posting consolidated profits of Rs8.76 billion (EPS: Rs4.93), up by 25% YoY against the net profit of Rs7.02bn (EPS: Rs3.94) in the same period of the last calendar year, led by higher net interest income (NII).
The financial result was accompanied by an interim cash dividend of Rs2.5 per share for the half year ended June 30, 2022.
During the period under review, the bank’s interest income jumped by 80% YoY to Rs82.65bn, while, interest expenses went up by 2 times YoY. As a result, the bank’s net interest income (NII) observed an upsurge of 45.5% YoY to Rs32bn during 1HCY22.
Meanwhile, the non-funded income (NFI) of the bank witnessed an increase of around 38% YoY to clock in at Rs11.4bn due to a two-fold increase in dividend income, nearly 3 times YoY increase in foreign exchange income coupled with a 2.6x YoY jump in other income, a gain of income derivatives of Rs101mn during 1CY22. However, the bank saw Rs85mn capital loss on securities.
Notably, the bank saw a massive 3.5x YoY increase in its provision charges, standing at Rs4bn against the provisions of Rs1.15bn in the last year due to concern about the economic slowdown, hurting the bank’s financial health.
On the tax front, the effective tax rate stood at 49% from 39% in 1HCY21.
|
Consolidated Financial Results for the half year ended June 30, 2022 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-22 |
Jun-21 |
% Change |
|
Mark-up/return/interest earned |
82,654,343 |
46,015,571 |
79.62% |
|
Mark-up/return/interest expensed |
50,533,760 |
23,935,373 |
111.13% |
|
Net mark-up/interest income |
32,120,583 |
22,080,198 |
45.47% |
|
Non-mark-up/interest income |
|
|
|
|
Fee and commission income |
5,325,091 |
4,010,821 |
32.77% |
|
Dividend income |
591,399 |
273,215 |
116.46% |
|
Foreign exchange income |
4,851,638 |
1,721,554 |
181.82% |
|
Gain/(loss) from derivatives |
101,083 |
47,620 |
112.27% |
|
Gain / (loss) on sale of securities |
(84,860) |
1,862,275 |
– |
|
Share of profit from associates |
388,898 |
253,094 |
53.66% |
|
Other income |
204,229 |
79,958 |
155.42% |
|
Total non-mark-up/interest income |
11,377,478 |
8,248,537 |
37.93% |
|
Total income |
43,498,061 |
30,328,735 |
43.42% |
|
Non-mark-up/interest expenses |
|
|
|
|
Operating expenses |
21,854,240 |
17,492,239 |
24.94% |
|
Worker’s welfare fund |
423,819 |
229,352 |
84.79% |
|
Other charges |
7,170 |
18,988 |
-62.24% |
|
Total non-mark-up/interest expenses |
22,285,229 |
17,740,579 |
25.62% |
|
Profit before provisions |
21,212,832 |
12,588,156 |
68.51% |
|
Provisions and write-offs – net |
4,040,148 |
1,150,382 |
251.20% |
|
Extra-ordinary/ unusual items |
– |
– |
|
|
Profit before taxation |
17,172,684 |
11,437,774 |
50.14% |
|
Taxation |
8,416,927 |
4,419,720 |
90.44% |
|
Profit after taxation |
8,755,757 |
7,018,054 |
24.76% |
|
Earnings per share – basic and diluted (rupees) |
4.93 |
3.94 |
25.13% |
34342
