Bank Alfalah has posted a profit growth of 14.6 percent in the first quarter of 2017, which surged to Rs 2.89 billion from Rs 2.52 billion last year.
The growth in profits has been attributed to both interest income and non-interest income alike, an exception in the banking sector.
Among big and mid-tier banks which so far announced their financial results, a majority of them showed a variable trend between the two major sources of revenues (interest-based and non-interest-based). These banks witnessed growth in non-interest based income. However, they faced a challenge in growing their interest-based income due to the prevailing low interest rate regime.
According to financial results (consolidated) declared in Abu Dhabi, Bank Alfalah net interest-based income grew to Rs 7.34 billion in the first quarter of 2017 as compared to Rs 6.86 billion recorded in the same period last year.
On the other hand, its non-interest income grew to Rs 2.55 billion in the said period as against Rs 2.35 billion during the last year.
Bank Alfalah is the sixth largest bank in the Pakistan’s banking industry in terms of deposits and branches network.
The bank is considered a leader in the credit cards business segment which drives healthy margins to the company under the head of interest-based income.
Bank Afalah, like many other banks, is eyeing every possible growth opportunity from the regional biggest mega project of CPEC.
It witnessed a change of guard this year as Chairman Sheikh Nahyan replaced his younger brother Sheikh Hamdan to take over the state of affairs of banks.
Atif Bajwa, CEO and President of Bank Alfalah has been entrusted to continue his tenure for the next three years. Overall, the team and leadership of the bank are strong enough to spur the bank forward towards growth and expansion.