Bank Alfalah announces solid half yearly financial results with Profit before Provisions and Taxation at Rs. 7.787 Billion

KARACHI, 20 AUGUST 2015 – Bank Alfalah’s results for the half year ended June 2015 remained positive, with the Bank registering profit before provisions and taxation of Rs. 7.787 Billion – an impressive growth of 85 percent, as against the corresponding period last year. Profit after tax for the half year period was reported at Rs. 3.704 Billion, as against Rs. 2.610 Billion for the corresponding period last year. This reflects an improvement of 42 percent, despite a significant tax impact considered in the current period on account of recent changes enacted to tax laws.

Expense management controls were further strengthened and resultantly the Bank’s cost to income ratio stood improved at 58 percent.

The Bank has delivered sound financial performance during the first half of the year. We are optimistic that we will continue to create further value in the lives of the people we touch, said Atif Bajwa, President & CEO, Bank Alfalah.

The Bank’s total assets at the Balance Sheet date stand at Rs. 785.800 Billion, increasing by 6 percent from the year end position. The Bank’s CASA percentage improved from 69 percent at December 2014 to 76 percent at June 2015. The Bank’s lending activity remained healthy, and with Gross Advances reported at Rs.319.177 Billion, the Bank’s ADR stands at 53 percent, better than the industry average levels in general.

As at 30 June 2015, the Bank’s Non-performing loans (NPLs) ratio stands at 6 percent. The Bank’s NPL coverage has improved to 78 percent.

The Pakistan Credit Rating Agency (PACRA), while maintaining the long-term and short-term entity ratings of Bank Alfalah at “AA” (Double A) and “A1+” (A One Plus) respectively, has assigned an improved “Positive” outlook to these ratings. The positive outlook captures the Bank’s ability to enhance its profile amidst a competitive banking landscape. Strengthening of the Bank’s capitalization (mainly Tier 1), further granularity in the advances and deposits book, rationalising advances concentration, and sustaining asset quality were critical aspects that were considered as part of the outlook enhancement.