The Board of Directors of Bank Alfalah Limited (BAFL) convened on April 17, 2025, to review and approve the Bank’s financial results for the quarter ending March 31, 2025. The Bank announced a profit after tax amounting to PKR 7.040 billion, which corresponds to an Earnings Per Share (EPS) of PKR 4.46. Additionally, the Board declared an interim cash dividend of PKR 2.5 per share (25%), compared to PKR 2.00 per share (20%) in the same period last year.
The rise in average current deposits, along with the overall positioning of the balance sheet, helped the Bank manage spread compression despite a notable 1,000 basis points decrease in the policy rate compared to the same period last year. As a result, the Bank achieved a 6% year-over-year growth in net interest income. Revenue growth was also bolstered by an increase in non-markup/interest income, which rose by 13% year-over-year, mitigating the effects of pressure on fee income due to market conditions affecting certain products. The growth in operating expenses is attributed to the expansion of the Bank’s network, employee compensation, and increased spending on marketing related to remittances.
As of March 31, 2025, the Bank’s total deposits reached PKR 2.019 trillion, as it adjusted its portfolio to manage the cost of deposits while emphasizing growth in average zero-cost Current Account (CA) deposits, evident from a marked improvement in the CA mix. Gross advances decreased to PKR 0.927 trillion as of March 31, 2025, down from December 2024, due to the maturity of short-term loans at year-end.
The Bank maintains rigorous capital management, achieving a Capital Adequacy Ratio of 17.64% as of March 31, 2025, which significantly exceeds the minimum regulatory requirements.
The Bank is dedicated to its strategic goals, employing a cautious and disciplined approach. With a strong emphasis on resilience, adaptability, and long-term value generation, the Bank is well-equipped to manage evolving macroeconomic challenges while consistently enhancing shareholder value.
