The Board of Directors of Bank Alfalah Limited (BAFL), in its meeting held on July 30, 2026, approved the Bank’s financial results for the half-year ended June 30, 2026. The Board of the Bank also declared a second interim cash dividend of PKR 1.5 per share (30%) cumulatively bringing the cash dividend payout for the six months period to PKR 3.0 per share (60%) [HY 2025: PKR 2.5 per share (50%)].
Financial Performance
Profit after tax increased by 39.6% to PKR 21.32 billion for the outgoing half year period, with earnings per share of PKR 6.76, up from PKR 4.84 in the same period last year. The increase in profitability was primarily driven by capital gains, supplemented by improved net interest income and efficient management of operating cost while continuing to support core strategic objectives.
On the balance sheet front, total deposits increased to PKR 2.66 trillion, while current deposits increased to PKR 1.15 trillion – a reflection of the Bank’s ongoing strategy to strengthen its non-remunerative deposit mix. Gross advances totaled to PKR 1.16 trillion, with broad-based growth across the Consumer, SME, and Agriculture financing segments.
Net Interest Income (NII) of the Bank increased by 5.0% owing to improved spreads and steady growth in average current account deposits. Furthermore, Non Fund Income also grew by 46.0% on the back of timely realisation of capital gains from active portfolio management, rise in foreign exchange income, and increased fee income generated through remittances, card portfolio, trade business, G2P Schemes, and alternate delivery channels.
The Bank’s capital adequacy ratio remained robust at 17.4% as of June 30, 2026; comfortably exceeding regulatory thresholds.
Significant Events
Bank Alfalah has recently inaugurated its 1,200th branch, marking a major milestone that underscores customer trust and reinforces the Bank’s strategic commitment towards combining personalised physical branches with advanced digital banking solutions.
The Bank is in the process of issuing a Subordinated Tier II Term Finance Certificate (TFC) with a total issue size of PKR 20 billion. The instrument has been assigned a preliminary credit rating of AAA by PACRA and has received strong market participation. The Bank had received advance against subscription money for this TFC amounting to PKR 18.045 billion as at period end June 30 2026, while subsequent to the period end, the Bank has also received the remaining issue amount of PKR 1.955 billion. This Tier II instrument is pivotal to the Bank’s growth strategy and will enhance shareholder returns over a long-term horizon.
Outlook
Going forward, Bank Alfalah remains committed to sustainable growth by expanding its Consumer and Small Medium Enterprise (SME) lending portfolios, advancing its Environmental, Social and Governance (ESG) agenda, and leveraging a strong low-cost deposit base to drive long-term value creation. The Bank will keep on investing in digital transformation and operational efficiency to enhance customer experience and create long-term shareholder value.
