Despite lower net interest income, Bank Alfalah saw its consolidated profit jump to Rs12 billion during the quarter ended June 30, 2024, which is nearly 53% higher than its earnings in the same period of the previous year.
The increase in profit-after-tax (PAT) is attributed to much higher non-markup income amid a jump in foreign exchange and commission income.
As per the financial statements shared with the Pakistan Stock Exchange (PSX) on Thursday, the bank reported earnings per share (EPS) of Rs7.59 compared to Rs4.97 in the same period last year.
The Board of Directors (BoD) of the bank announced the second interim cash dividend for the quarter ended 30th June 2024 at the rate of Rs2 per share i.e. 20%. This is in addition to the first interim cash dividend already paid at Rs2 per share i.e.20%, cumulative 40%, for the half-year ended 30th June 2024.
Bank Alfalah’s profit falls 8% in 1QCY24, clocks in at Rs9.93bn
The net interest income of Bank Alfalah fell marginally to Rs30.62 billion in 2QCY24, a decline of 2% from a year ago, as compared to Rs31.2 billion registered in SPLY.
On the other hand, the non-interest income of the bank registered a growth of over 76% on a year-on-year basis. Non-interest income amounted to Rs12.25 billion, as compared to Rs6.94 billion registered in SPLY.
In 2QCY24, BAFL generated Rs4.99 billion in fee and commission income, up 39% compared to last year. Its foreign exchange income also increased to Rs3.03 billion compared to RsRs1.78 billion in April-June quarter of 2023.
During the quarter, Bank Alfalah made a total income of Rs42.87 billion, translating into a 12% increase over the earnings recorded in SPLY.
Bank Alfalah’s saw its non-mark-up expenses rise to Rs20.32 billion in 2QCY24, as compared to Rs16.45 billion in SPLY, a jump of 24% YoY. Its operating expenses, which jumped from Rs15.9 billion to Rs19.8 billion, were a major reason behind the higher non-markup expenses going up.
The bank profit before tax clocked in at Rs22.58 billion in 2QCY24, an increase of over 31%.
The tax expense of Bank Alfalah increased 13% year-on-year to Rs10.6 billion in 2QCY24, in comparison to Rs9.4 billion in SPLY.
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