Bank Alfalah Announces Half-Yearly Financial Performance for 2025

Bank Alfalah Limited (BAFL) has announced solid financial results for the first quarter of 2025, with a Profit After Tax (PAT) of PKR 7.04 billion and an Earnings Per Share (EPS) of PKR 4.46, reflecting stable core performance amid interest rate shifts. The bank declared an interim cash dividend of Rs 2.5 per share (25%), up from 20% last year. Fueled by 6% growth in net interest income and 13% increase in non‑mark‑up income, BAFL successfully offset rising expenditures and maintained a strong funding mix as it positions for half‑yearly results.

• Profit After Tax (Q1 2025): PKR 7.04 billion (EPS: PKR 4.46).

• Interim Dividend: PKR 2.5/share (25%) compared to 20% last year.

• NII Growth: Net markup income rose 6% YoY despite the policy rate reduction.

• Non‑Mark‑Up Income Growth: Up 13% YoY driven by gains in derivatives, dividends & securities.

• Operating Expenses: Increased by ~40% due to network expansion, staff costs, and remittance marketing.

• Deposits: PKR 2.019 trillion, boosted by growth in zero-cost current account funding.

• Advances: Gross loans fell to PKR 0.927 trillion due to the maturity of short-term credit lines.

Despite a 1,000 basis point decline in policy rate from the same period last year, BAFL managed a 6% rise in net interest income, thanks to improved deposit mix and cost-effective funding from current accounts

• Deposits reached PKR 2.019 trillion, reflecting the strategic leverage of low-cost current accounts.

• Gross advances fell to PKR 0.927 trillion, as short-term lending facilities granted at year-end matured without immediate renewal.

• According to KPMG’s Pakistan Banking Perspective 2025, Bank Alfalah remains one of 21 top institutions navigating slim margins, trade tension, and volatile capital markets. Strategic tech investment and regulatory compliance are critical challenges ahead.

• The strong non-mark-up income performance indicates success in leveraging treasury and capital market gains—mitigating reliance solely on lending margins.

Bank Alfalah’s performance in Q1 2025 reflects a resilient institution—balancing margin pressure from rate declines by diversifying revenue and expanding its branch network. The robust PKR 7bn profit, coupled with a 25% dividend, demonstrates sustained shareholder value despite rising cost challenges.

Looking ahead, the bank’s success will depend on continued discipline in cost management, growth in low‑cost deposits, and innovation in fee-based products. As Bank Alfalah heads into the second half of 2025, its results will serve as a benchmark for private-sector banking resilience in Pakistan’s evolving economic environment.