IGI Securities Limited – Flash Note (February 02, 2023)

Karachi, February 02, 2023 (PPI-OT): Commercial Banks – Bank Alfalah Limited

Earnings: Bank Alfalah Limited (BAFL) announced its annual result for the year 2022. As per the financial
result, the Bank reported earnings of PKR 18.2bn (PKR 10.2/share) during CY22 compared to same period
last year of PKR 14.2bn (PKR 8/share), an increase of +28%y/y.

Dividend/Payout: The bank announced a final cash dividend of PKR 2.5/share this quarter. This brings
total cash payout to PKR 5/share for CY22.

Operating Performance: During the period under review, the Bank reported net-interest income of PKR
77.3bn (up by +68%y/y) and non-interest income of PKR 21.8bn (up by +32%y/y). As a result, total
revenue of the bank stood at PKR 99.1bn (up by +58.5%y/y). Moreover, BAFL recorded operating
expenses of PKR 50.5bn (up by +37%y/y) that improved bank’s cost/income ratio to 51% (last year: 59%).
The Bank booked a provision charge of PKR 12.5bn during CY22. Tax charge for the year came at PKR
18bn (effective tax rate of 50%).