Bank Alfalah Limited sustained its profitability in 2018 with double-digit growth of 27 percent in profit from the previous year.
According to the financial results made public, the bank profit grew to Rs. 10.9 billion as compared with the profit of last year that stood at Rs 8.61 billion. The banks’ profitability increased by Rs. 2.3 billion.
The strategy adopted by Bank Alfalah maintained its profits at the time when overall banking industry including big banks witnessed a negative growth in their profitability for various reasons including low interest income.
Bank Alfalah retained its command over the profitable avenues of the income besides it controlled its operating expenses to grow with efficient management of resources along with productive expenditures.
The interest income of the bank increased to Rs. 31.5 billion in 2018 from Rs. 28.9 billion of 2017. The income from non-interest income surged to Rs.11.13 billion in 2018 from Rs.9.762 billion of 2017.
The bank did not focus on the widening of its branches network but it explored different areas to make huge margins including SMEs and corporate financing. During the period, the bank also carried out aggressive campaigns for recovery against non-performing loans.
The administrative expenses of the bank reduced to Rs. 24.7 billion in the closing year from Rs25.2 billion of the preceding year– a rare phenomenon in the banking industry.
The overall revenue of the bank increased to Rs.42.7 billion in 2018 from Rs. 38.7 billion of 2017. The earnings per share value of the bank surged to 6.2 per share.
The bank declared a dividend of Rs. 1.5 per share in addition to Re. 1 dividends paid already. The bank has already announced 10 percent bonus shares.