Bank Alfalah has made a profit of Rs. 6.2 billion in the first half of the current year as compared to Rs. 6.03 billion profit in the previous year, showing a modest growth of 2.8%.
The profitability of the bank showed a mild drop in growth in the first quarter of 2019 on the huge payment of Super Tax like many other banks but the bank recovered its profit growth successfully in the next immediate quarter mainly due to revenues generated through interest income.
The net interest income showed a staggering increase of 41%, which translates to over Rs. 6 billion. It increased to Rs. 21.65 billion in the first half of 2019 as against of markup income of Rs. 15.35 billion recorded in the same period of last year. The increase in the interest income was driven by the steep hike in the interest rates in line with the policy rate, which went up in 2019.
But the bank’s non-markup income decreased to Rs. 4.99 billion by the end of June as compared to Rs. 5.35 billion recorded in the corresponding period of last year.
The expenses of the bank also grew to Rs. 14.25 billion this year from Rs. 11.85 billion reported last year.
According to the financial statement, the earning per share of the bank also increased to 3.50 from 3.41. The board announced the interim cash dividend at the rate of Rs. 2 per share, that is, 20%.
Bank Alfalah left HBL behind in terms of profit. Its profit stands at Rs. 6.2 billion compared to Habib Bank Limited which booked a profit of Rs. 3.92 billion after a dip of 50% in the profitability of the last year.