KARACHI:Bank Alfalah declared record profit after tax of Rs 5.019 billion, showing a double digit growth of 45% year-on-year that translated into an EPS of Rs 2.82. This is one of the highest growth in profit after tax for the first quarter of the current year across the industry and it endorses that Bank Alfalah is maintaining its competitive position in the industry, said a press release on Tuesday.
The Board of Directors of Bank Alfalah Limited (BAFL), in its meeting held on April 26, revealed the BAFL’s financial results for the quarter that concluded on March 31. Alfalah’s impressive performance for 2022 proves its customer-centricity and product innovation driven by the growth strategy.
During the period under review, BAFL’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.
Whereas, the non-markup expenses were 21.6% higher compared to the same period last year. This surge 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 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 percent.
The bank’s quarter end deposit footing stood at Rs. 1.178 trillion at the end of Q1’22, with year-on-year 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% of the same period last year that reinforces the clients’ trust on the bank.
On the contrary, the BAFL’s loans grew 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.