KARACHI: Bank Alfalah Limited (BAFL) declared record profit-after-tax of Rs5.019 billion, showing a double-digit growth of 45 per cent YoY that translated into an EPS of Rs2.82, compared with Rs1.95 during the same period of the last year, a statement said on Tuesday.
The board of directors of the bank revealed BAFL’s financial results for the quarter ended March 31, 2022. The bank’s impressive performance for 2022 is an endorsement of its customer-centric approach and product innovation-driven strategies.
The growth trajectory continued in the first quarter of 2022. This is one of the highest growth in the profit-after-tax for the first quarter across the industry and is the testament that Bank Alfalah is maintaining its competitive position in the industry.
During the period under review, Bank Alfalah’s revenue increased 31.9 per cent backed by strong net interest income and non-interest income growth.
The bank’s net interest margins improved on a year-on-year basis as a result of well-thought out, focused and prudent AML strategy, along with strong deposits growth. The growth continued the upward trajectory with a growth momentum in home remittances and trade flows, increase in market share and higher debit and credit card spending.
The non-markup expenses were 21.6 per cent higher, compared with the same period of the last year. This surge was driven by the full-year impact of new branches opened last year along with the expenses attributable to new initiatives.
The bank continues to invest in technology, people and businesses, to improve the market share and to become a leading transactions bank. Despite the investment in multiple initiatives, Bank Alfalah witnessed an improvement in the cost-to-income ratio to 55.1 per cent.
The bank’s deposits stood at Rs1.178 trillion at the end of the first quarter of 2022, with a YoY growth of 29 per cent, compared with the same period of the preceding year.
The bank continues to outpace the industry in deposit growth, as well as exceptional current account growth. The current and savings accounts achieved an impressive YoY growth of 31 per cent and 35.6 per cent, respectively.
Bank Alfalah’s CASA mix noted an increase of 80.6 per cent versus 78.2 per cent during the same period last year that reinforces the clients’ trust in the bank.
Bank Alfalah grew loans by record 17.3 per cent YoY, while maintaining the stellar credit discipline and a strong balance-sheet with significant capital and liquidity positions. The part of this growth is attributed to the government-backed schemes for economic development, in which the bank’s delivery of Mera Pakistan Mera Ghar and Prime Minister’s Kamyab Jawan Scheme is ranked among the top performing banks.
The bank not only achieved the targets but also added value to these initiatives of the State Bank of Pakistan (SBP) with effective marketing. As at the period end, the bank’s gross advances-to-deposits ratio achieved a 60.4 per cent rise, which is one of the highest in the industry.
The bank’s non-performing loans ratio stood at 3.4 per cent, while the non-performing loans remained fully covered.
Despite the robust growth in advances, Bank Alfalah remains adequately capitalised, and well above the regulatory requirement with 14.77 per cent as of December 31, 2021.
This momentum will continue, despite the prevailing uncertainty, since the bank is committed to its strategy of growth, customer-centric approach and innovation.
