Bank Alfalah’s Pre-Tax Profit Grows by 21% in Q1 2019

Bank Alfalah’s profit before taxation stands at Rs. 6.134 billion for the quarter that ended on March 31, up from Rs. 5.075 billion a year ago, indicating an impressive growth of 21%.

The bank’s profit after taxation is Rs. 3.122 billion due to higher taxation as a result of Super Tax. The Earning Per Share (EPS) was recorded at Rs. 1.76 (Mar 2018: Rs. 1.85).

The bank has strongly positioned itself in this rising interest rate environment. Total revenue for the quarter was reported at Rs. 13.450 billion compared to Rs. 10.364 billion from the corresponding period last year, improving by 30%.

The growth in revenue was led primarily by higher spreads in line with policy rate increases as well as higher average volumes. Fee income went up by 11%, while there is a swing in capital gain line due to gain realized on government securities last year and bearish stock market sentiments during the first quarter of 2019. Consequently, overall non-fund based income is low compared to last year.

Administrative expenses increased by 16% against the previous reporting period. Main factors behind this are deposit protection insurance which is a new levy, customer promotion costs to tap unbanked segment, the overall impact on cost due to inflationary adjustments and Rupee devaluation.

The annual increment and performance bonus cycle, as well as new hires over the year, are some of the reasons attributable to increase. This is the manifestation of Bank’s endorsement to invest in its human resource.

Asset quality was stable, with gross non-performing loans as a percentage of total loans at 3.9% by the end of March, marginally higher than December end due to decrease in the advances portfolio. Absolute non-performing loans are lower than December 2018 level.

The shareholders’ equity of the bank increased by 1.7%. This is post payment of dividend approved by the shareholder in the AGM held in March 2019. At the close of the first quarter, the bank remains very adequately capitalized with CAR at 16.18%.

The bank’s request for sale of Afghanistan operations had been turned down by the central bank in Afghanistan and resultantly results of the operations have been presented as ‘continuing operations’ in the financial statements as required under the accounting standards.

  • All these bank are making profits but why dont they introduce some innovate payment gateway for Pakistani youth for online shopping alternative to paypal.

  • Ltd feature videos

    Watch more at LTD