The Board of Directors of Bank Alfalah Limited (BAFL), in its meeting held on July 31, 2025, approved the Bank’s financial results for the half year ended June 30, 2025.
Bank Alfalah reported profit after tax (PAT) of PKR 15.27 billion for the half year ended June 30, 2025, translating to earnings per share of PKR 9.68 (June 2024: PKR 13.06). The Board of Directors declared a second interim cash dividend of PKR 2.50 per share (25%), cumulatively bringing the cash dividend for the year to PKR 5.00 per share (50%) (HY 2024: PKR 4.00 per share (40%)).
The Bank was able to offset the impact of interest rate cut through current account growth. Further, balance sheet positions taken last year supported both net interest income as well as resulted in opportunities for capital gains. The changing dynamics of pricing of some products and remittances added pressure on the bottom line; we expect these will majorly settle in the second half of the year.
Total deposits closed at PKR 2.29 trillion. The Bank had shifted its deposit strategy towards mobilizing current account balances and granular sticky deposits to build a diversified and stable deposit base. That strategy has paid back with better cost of deposits, giving support to NII to offset declining rates.
Driven by the Bank’s strategic shift towards growing low risk corporate lending while gradually increasing consumer finance as interest rates become more conducive, the Bank’s loan book grew by 34.5% YoY to close at PKR 1,057.72 billion. Further, following noticeable growth in the agriculture and small and medium enterprises (SMEs) segments over the years, the Bank will continue to prioritise credit expansion towards these segments, with tailored financing solutions to foster financial inclusion.
The Bank exercises strong capital management with a Capital Adequacy Ratio of 17.67% as at June 30, 2025, which is well above the minimum regulatory requirement.
Bank Alfalah is well-positioned to deliver long-term shareholder value in the face of evolving macroeconomic challenges. The Bank aims to attain this by remaining steadfast towards its strategic objectives, continuing to focus on extending its domestic footprint, investing in its people and technology, and remaining committed to responsible and sustainable banking practices.
