KARACHI: The Board of Directors of Bank Alfalah Limited (BAFL), in its meeting held on Thursday, approved the Bank’s financial results for the half year ended June 30, 2025.
Bank Alfalah reported profit after tax (PAT) of Rs 15.27 billion for the half year ended June 30, 2025, translating to earnings per share of Rs 9.68 (June 2024: Rs 13.06). The Board of Directors declared a second interim cash dividend of Rs 2.50 per share (25%), cumulatively bringing the cash dividend for the year to Rs 5.00 per share (50%) (HY 2024: Rs 4.00 per share (40%).
The Bank was able to offset the impact of interest rate cut through current account growth. Further, balance sheet positions taken last year supported both net interest income as well as resulted in opportunities for capital gains. The changing dynamics of pricing of some products and remittances added pressure on the bottom line; we expect these will majorly settle in the second half of the year.
Total deposits closed at Rs 2.29 trillion. The Bank had shifted its deposit strategy towards mobilizing current account balances and granular sticky deposits to build a diversified and stable deposit base. Driven by the Bank’s strategic shift towards growing low risk corporate lending while gradually increasing consumer finance as interest rates become more conducive, the Bank’s loan book grew by 34.5% YoY to close at Rs 1,057.72 billion.
Further, following noticeable growth in the agriculture and small and medium enterprises (SMEs) segments over the years, the Bank will continue to prioritise credit expansion towards these segments, with tailored financing solutions to foster financial inclusion.
The Bank exercises strong capital management with a Capital Adequacy Ratio of 17.67% as at June 30, 2025, which is well above the minimum regulatory requirement.
Copyright Business Recorder, 2025