FLASHNEWS:

Bank Alfalah’s another strong quarter; PAT up by 45%

Karachi, April 27, 2022 (PPI-OT):The Board of Directors of Bank Alfalah Limited (BAFL), in its meeting held on April 26, 2022, 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 centricity and product innovation driven by the growth strategy.

The growth trajectory continued in the first quarter of 2022. The Bank declared record profit after tax of 5.019 billion, showing a double digit growth of 45% YoY, that translated into an EPS of Rs. 2.82 (SPLY: Rs. 1.95). This is one of the highest growth in profit after tax for Q1 across the industry, and is the testament that Bank Alfalah is maintaining its competitive position in the industry.

During the period under review, the Bank’s revenue increased by 31.9% backed by strong net interest income and non-interest income growth. The Bank’s net interest margins improved year on year as a result of well thought out, focused and prudent ALM strategy, along with strong deposits growth. The growth continued the upward trajectory with a growth momentum in home remittance business and trade flows, increase in market share, higher debit and credit card spend.

Non-markup expenses were 21.6% higher compared to the same period last year. This was driven by the full year impact of new branches opened last year along with expenses attributable to new initiatives. The Bank continues to invest in technology, people and businesses, to improve 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%.

The Bank’s quarter end deposit footing stood at Rs. 1.178 trillion at the end of Q1’22, with YoY growth of 29.0% compared to Q1’21. 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 31.0% and 35.6% respectively. Bank Alfalah’s CASA mix noted an increment to 80.6% versus 78.2% SPLY that reinforces the clients’ trust on the Bank.

The Bank grew loans by record 17.3% YoY, while maintaining stellar credit discipline and a strong balance sheet with significant capital and liquidity positions. Part of this growth is backed by 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 amongst the top performing banks.

The Bank, not only achieved the targets but also added value to these initiatives of SBP with effective marketing. As at the period end, the Bank’s gross advances to deposits ratio achieved 60.4%, which is one of the highest in the industry. The Bank’s non-performing loans ratio stood at 3.4%, while the non-performing loans remain fully covered.

Despite the robust growth in advances, the Bank’s remains adequately capitalized, and well above the regulatory requirement with 14.77% as at 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.

For more information, contact:
Head of Corporate Communications
Bank Alfalah Limited
2nd Floor, B.A Building, I.I Chundrigarh Road,
Karachi, Pakistan
UAN: +92-21-111-777-786 Ext 2638
Tel: +92-21-32423952
Email: salimahshiraj@yahoo.com
Website: https://www.bankalfalah.com/