The Board of Directors of Bank Alfalah in their meeting held in Abu Dhabi
on 26 August 2018, approved the Bank’s un-audited condensed interim financial
statements for the quarter and half year ended June 30, 2018.
The Bank’s Profit
before Taxation for the six months period ended June 30, 2018 was recorded at
Rs. 10.008 Billion, as against Rs. 8.470 Billion, for the corresponding period
last year, improving by 18 percent. Profit after taxation for the period was
reported at Rs. 6.039 Billion, improving by 24 percent against the corresponding
period last year, which resulted in earning per share being reported at Rs. 3.75
for the period.
Net Interest Income (NII)
for the period was reported at Rs. 15.356 Billion, improving by 2 percent year
on year. Volumetric growth in advances and average current account volumes, and
improvement in overall spreads has resulted in NII levels being maintained,
despite a notable reduction of income from PIBs.
The Bank’s Non-Interest
Income improved impressively by 8 percent to end at Rs. 5.765 Billion. Core Fee
and Commission improved by 3 percent year on year, whereas foreign exchange
income as well as dividend income also contributed to the overall growth,
improving by 89 percent and 63 percent respectively.
Administrative
Expenses were recorded at Rs. 11.676 Billion, ending 2 percent lower as
compared to prior period, despite certain non-recurring expenses affecting both
periods. The Bank focus remains on monitoring the key cost control initiatives.
Total non-mark-up expenses reduced by 3 percent, mainly due to the reversal of
provision booked in earlier years against funds blocked in the Bank’s Nostro
Account in the US, with the case being successfully settled in favor of the
Bank.
At June 30, 2018, the
Bank’s coverage ratio stands at 91 percent, while the NPL ratio stands at 3.4
percent. Net reversals against advances improved from Rs. 267 million for the
half year ended June 2017 to Rs. 496 million for the current period, mainly on
account of improved recoveries, which were reported at Rs. 1,355 million for
June 2018, as against Rs. 1,136 million for the corresponding half year period.
With a strong focus
on improving the deposit mix, the Bank’s CA has increased by Rs. 39 Billion to
Rs. 307 Billion, representing an increase of 15 percent.
The Bank’s first ever
additional Tier-1 Capital was issued in the current period, in the form of
listed, perpetual, unsecured, subordinated, non-cumulative and contingent
convertible debt instruments. With this issue, the Bank’s additional Tier-1
capital has improved, and the proceeds from the issue are intended to be
utilized towards further enhancement of the bank’s business operations.
The Board of
Directors declared an interim cash dividend of 10 percent as well as bonus
shares in proportion of 10 shares for every 100 shares held.