Karachi – April 18, 2025: Bank Alfalah Limited (BAFL) has announced robust financial results for the first quarter of 2025, posting a profit after tax of PKR 7.040 billion, reflecting continued growth and resilience in a challenging macroeconomic environment. The announcement was made following a meeting of the bank’s Board of Directors held on April 17, 2025, where the financial statements for the quarter ended March 31, 2025, were approved.
The impressive performance translates into Earnings Per Share (EPS) of PKR 4.46, underscoring the bank’s ability to maintain profitability amid monetary tightening and shifting market dynamics. In a further sign of confidence, the Board also declared an interim cash dividend of PKR 2.5 per share (25%), a notable increase from the 20% dividend (PKR 2.00 per share) declared in the same period last year.
Bank Alfalah’s net interest income grew 6% year-on-year, despite the impact of a 1,000 basis point reduction in the policy rate compared to the same period last year. This growth was driven by the expansion in average current deposits and strategic balance sheet management that helped mitigate spread compression.
Non-markup income also supported revenue growth, rising 13% year-on-year. This was achieved despite pressure on fee-based income, which has faced headwinds from evolving market dynamics affecting specific financial products. Key contributors to non-interest income included trade finance, foreign exchange, and remittance-related services.
On the expense side, operating costs reflected the bank’s ongoing network expansion, staff compensation adjustments, and enhanced marketing efforts, particularly in the remittance segment. These strategic investments are aligned with the bank’s focus on long-term growth and market reach.
As of March 31, 2025, Bank Alfalah’s total deposits stood at PKR 2.019 trillion, indicating continued efforts to optimize deposit composition. A significant improvement in the current account (CA) mix was observed, as the bank rationalized deposit costs and shifted focus towards zero-cost current deposits to protect margins.
On the lending front, gross advances were recorded at PKR 0.927 trillion, a decline from year-end figures. This reduction was attributed to the maturity of short-term loan facilities that had been extended toward the close of 2024. Despite this dip, the bank maintains a cautious lending strategy in line with macroeconomic developments and credit risk considerations.
Bank Alfalah’s Capital Adequacy Ratio (CAR) remained strong at 17.64%, significantly above the minimum regulatory requirement. This demonstrates sound capital management and the bank’s ability to absorb potential shocks, while continuing to support growth.
Looking ahead, Bank Alfalah reiterated its commitment to delivering sustainable, long-term value to shareholders through a disciplined and adaptive approach. With a solid foundation, proactive risk management, and a focus on operational excellence, the bank is positioned to weather economic fluctuations and capitalize on emerging opportunities within Pakistan’s evolving financial ecosystem.
This performance cements Bank Alfalah’s standing as one of Pakistan’s leading private sector banks, with strong momentum heading into the remainder of FY2025.