Lahore, September 29, 2022 (PPI-OT):Bank Alfalah is an active player in the lending market. Its presence around different segments of advances book is also meaningful. The ratings reflect the bank’s improved performance, good asset quality, strong financial profile and healthy liquidity. Asset quality improved as NPLs remained intact and overall infection ratio declined. In line with the Bank’s overall growth strategy, as on Jun’22, the gross advances of the Bank have increased by 8.1% since Dec’21, contributing to increase in Risk Weighted Assets; along with regular dividend payouts, thereby CAR stood at 14.64% as of Jun’22 (CY21: 14.43%), well above the Regulatory threshold. The bank’s advances have improved to a notable level, resulting in a distinguished ADR (Net Advances to Deposits) of 55.1% as on Jun’22.

Policy rates have peaked in 2022 increasing the Bank’s cost of funds as well. PAT of the Bank increased by 25.5% and stood at PKR 8.7bln during 6MCY22 (6MCY21: PKR 6.9bln). The rating draws comfort from the Bank’s stable ownership, experienced management team, prudent risk management policies and distinct emphasis on improving the position. Going forward, the macro-economic environment is beset with myriad challenges due to heightened interest rate, tightening of demand, rupee depreciation and higher infection. The growth trajectory of the bank especially nurturing of the deposit and advances base and enriching the granularity would be considered positive.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com