AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Bank Alfalah Limited (BAFL) disclosed its second-quarter financial results for the calendar year 2025, revealing a growth in net profit after tax (NPAT) to PkR8.2 billion, translating to earnings per share (EPS) of PkR5.22. The figures represent a 23% year-on-year decline but a 17% quarter-on-quarter increase, surpassing market expectations due to significant gains on securities.
In tandem with its financial disclosures, the bank announced an interim cash dividend of PkR2.5 per share, aligning with expectations and bringing the half-year total to PkR5.0 per share.
Net interest income (NII) rose to PkR34.4 billion, marking a 10% year-on-year and 3% quarter-on-quarter increase. The growth was attributed to a sharper decline in mark-up expensed as opposed to mark-up earned, which fell by 27% year-on-year and 2% quarter-on-quarter due to reduced yields on investments and advances.
Despite a drop in fee income, Bank Alfalah’s non-interest income surged to PkR15.0 billion, a 22% year-on-year and 65% quarter-on-quarter increase. The boost was driven by a substantial gain on the sale of securities, registering a 3.5 times year-on-year and 12.4 times quarter-on-quarter rise, counterbalancing a loss on derivatives.
Provisioning expenses saw a slight decrease to PkR1.4 billion compared to PkR1.5 billion in the same quarter of the previous year. Non-markup expenses rose by 41% year-on-year to PkR29.4 billion, influenced heavily by marketing and advertisement expenditures.
The bank’s effective tax rate for the quarter increased to 55.6%, compared to 49.3% in the corresponding quarter of the previous year and 54.2% in the first quarter of 2025.
Market analysts have issued a ‘BUY’ recommendation on Bank Alfalah’s stock, with a target price of PkR120 per share by December 2025, citing continuous growth in deposit base and a strategic digitalization drive supported by robust marketing efforts.