Bank Alfalah Limited maintained growth in profitability and posted a 5% increase in 2016 to stand at Rs 7.900 billion against Rs 7.523 billion in 2015.
Bank Alfalah announced its financial results in the 25th Annual General Meeting (AGM) that was held in Karachi on Tuesday. Its earnings per share were reported at Rs. 4.96, up 4.8 percent from Rs. 4.73 in December 2015.
Bank President and CEO Atif Bajwa said that the year 2016 remained challenging for the industry in general, due to the continued low interest rate regime and narrowing spreads.
“Despite the challenges, Bank Alfalah showcased 5 percent growth. With pressure on core revenues, cost of fund was actively managed, so as to minimize impact of falling spreads on the net interest income.” Aitf Bajwa added.
The shareholders were informed that the bank’s net provisions decreased by 48% to Rs. 1.2 billion, aided by higher recoveries against Bad Loans. Bank’s NPL ratio remained at 4.8 percent, and more importantly, the coverage ratio was reflected at 86 percent, both of which compare well with the best in the industry.
The bank’s total assets in December 2016 were reported at Rs. 917 billion against Rs 903 Billion last year.
In line with the bank’s strategy for mobilizing core and stable deposits and to reduce the overall cost of deposits, total deposits remained at the level of Rs 640 Billion, with overall CASA mix improving to 83 percent and Current Accounts increasing by 19 percent.
The bank’s lending activity continued to remain healthy with Gross Advances improving by 13 percent to Rs 396 billion in December 2016.