Bank Alfalah is one of the few banks that retained its profit growth. Despite challenges of low interest rates and reducing margins on services, it made a double digit growth of 14.5 percent in profit during the first nine months of 2017.
According to the financial reports, the bank’s profit after tax improved to Rs. 7.175 billion, 14.5 percent higher against the corresponding period last year. Earnings per share were reported at Rs. 4.47 for the nine month period.
The bank’s Net Interest Income (NII) was maintained at the same level as that for the corresponding period in 2016, with NII reported at Rs. 21.685 billion.
Non-fund based income improved by 15 percent to Rs. 7.966 billion against the corresponding period last year, with contributions coming from core fee, commission and brokerage income, and income from dealing in foreign currencies.
With non-essential costs continually kept in check, growth in administrative expenses was restricted to 2 percent from the same period in 2016.
Following the trend depicted in the earlier quarters of the year, recoveries continued to outpace the charge considered against NPLs in the third quarter as well. Overall reversals in the nine month period amounted to Rs. 1.906 billion, as a charge against NPLs of Rs. 1.268 billion for the period, which further aided growth in bottom line profitability.
The bank’s total assets were reported at Rs. 969.808 billion at September 2017, improving by 6 percent against December 2016 levels.
Net Advances for the nine month period in 2017 were reported at Rs. 397.852 billion, indicating a growth of 5.1 percent against December 2016. The Bank’s coverage ratio at the period end has improved to 89.8 percent, whereas the Bank’s NPL ratio stands restricted at 4.2 percent.
Sustaining NII levels amidst a consistently low interest rate regime is reflective of the bank’s prudent and effective balance sheet management strategy.
Bank Alfalah’s performance further reiterates their commitment to maximizing shareholder value, while providing customers with unparalleled financial services.