Bank Alfalah Limited (BAFL) has announced its financial results for the first half of 2025, showcasing a steady performance in a changing economic environment. In its Board of Directors meeting held on July 31, 2025, the bank approved the results for the six months ending June 30, 2025, reporting a profit after tax of PKR 15.27 billion. This translates to earnings per share of PKR 9.68, compared to PKR 13.06 in the same period last year.
Alongside the results, the Board declared a second interim cash dividend of PKR 2.50 per share, bringing the cumulative dividend for the year to PKR 5.00 per share, equivalent to a 50% payout ratio. In comparison, the half-year 2024 dividend stood at PKR 4.00 per share.
Despite a reduction in interest rates, Bank Alfalah managed to cushion the impact through strategic current account growth and well-positioned balance sheet decisions made last year. These measures not only supported net interest income but also created opportunities for capital gains. While pricing changes in certain products and shifts in remittance patterns added pressure to the bottom line, the bank anticipates these factors will stabilize during the second half of the year.
Total deposits reached PKR 2.29 trillion by the end of June 2025. The bank’s focus on mobilizing current account balances and acquiring granular, long-term deposits has strengthened its funding base. This approach has improved the cost of deposits, helping to maintain net interest income in the face of declining benchmark rates.
On the lending side, Bank Alfalah recorded a significant 34.5% year-on-year increase in its loan book, closing at PKR 1,057.72 billion. The growth was driven by a strategic emphasis on low-risk corporate lending, complemented by a gradual expansion in consumer finance as the interest rate environment became more favorable. The bank also continues to prioritize the agriculture and small and medium enterprise (SME) sectors, offering specialized financing solutions aimed at promoting financial inclusion across Pakistan’s economic landscape.
The institution’s financial stability remains robust, with a Capital Adequacy Ratio (CAR) of 17.67% as of June 30, 2025 — well above the regulatory minimum requirement. This strong capital position provides a solid foundation for further growth and resilience amid macroeconomic fluctuations.
Looking ahead, Bank Alfalah is committed to delivering sustainable long-term value for shareholders. Its strategy revolves around expanding its domestic presence, investing in human capital, and accelerating technology adoption to meet evolving customer needs. By maintaining a focus on responsible banking practices, strengthening its digital capabilities, and enhancing its product portfolio, the bank aims to remain at the forefront of Pakistan’s modern financial services industry.