Despite higher net income, Bank Alfalah saw its profit fall to Rs9.93 billion during the quarter ended March 31, 2024, which is nearly 8% lower than its earnings in the same period of the previous year.
The decline in profit-after-tax (PAT) is attributed to much lower foreign exchange income, higher operating expenses, and increased taxation.
As per the financial statements shared with the Pakistan Stock Exchange (PSX) on Wednesday, the bank reported earnings per share (EPS) of Rs6.31 compared to Rs6.83 in the same period last year.
Bank Alfalah’s profit jumps over 96% in 2023
The board of directors also announced an interim cash dividend of Rs2 per share i.e. 20%.
The net interest income of Bank Alfalah rose to Rs30.79 billion in 1QCY24, up over 10% from a year ago, as compared to Rs27.91 billion registered in SPLY.
Meanwhile, the non-interest income of the bank registered a growth of nearly 20% on a year-on-year basis. Non-interest income amounted to Rs8.1 billion, as compared to Rs6.8 billion registered in SPLY.
In 1QCY24, BAFL generated Rs4.5 billion in fee and commission income, up over 31% compared to last year. Its foreign exchange income also declined to Rs2.3 billion compared to RsRs3.3 billion in January-March quarter of 2023.
During the quarter, Bank Alfalah made a total income of Rs38.86 billion, translating into a 12% increase over the earnings recorded in SPLY.
Bank Alfalah’s saw its non-mark-up expenses balloon to Rs19.16 billion in 1QCY24, as compared to Rs15.12 billion in SPLY, a jump of 27% YoY. Its operating expenses, which jumped from Rs14.7 billion to Rs18.5 billion, were a major reason behind the higher non-markup expenses going up.
As a result, the bank profit before tax clocked in at Rs19.82 billion in 1QCY24, an increase of just 4%.
The tax expense of Bank Alfalah increased 20% year-on-year to Rs9.88 billion in 1QCY24, in comparison to Rs8.26 billion in SPLY.
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