- BAFL announces Rs. 6.4 billion Half Year Profit on back of higher Net Interest Income and reversal of Provisioning
- Upbeat Half Year 2019 financial Performance despite increased provisioning beats analyst expectations
- On a quarterly basis, Net Interest Income (NII) registered a decline of 6.0%QoQ owing to markup suspension of bad loans contributing to fall in income
Bank Alfalah Ltd notified PSX it’s Half Year Financial Result where it posted Net Profit of Rs. 6.483 billion marking an increase of 4%YoY. The Bank also announced an interim cash dividend of Rs. 2/share pointing to a healthy Balance Sheet Position.
Bank Alfalah’s core Interest income posted a robust growth of 41% primarily on the back of asset Re-pricing to higher levels. Cost to income ratio of the BAFL is noted at 55% as against 51% in 1QCY19 which is in the backdrop of investment in new initiatives and an increase in staff benefits as compared to last year.
Due to the subdued Stock market performance, the bank reported a net loss of Rs. 64 million in its trading activities as compared to a gain of Rs. 1.2 billion SPLY which resulted in a decline in non-funded income of 9%YoY. The fee and commission income marked a growth of 10%. The foreign exchange income of the bank also posted an increase of 43%YoY.
Deterioration in Asset Quality of Loan Portfolio was witnessed as Bank booked Additional Provisioning of Rs.979mn as opposed to reversals of Rs. 850mn during half-year period last year. This resulted in containment of net profitability.
|Rupees in Million||1HCY19||1HCY18||YoY|
|Net Interest Income||21,650||15,356||41%|
|Profit Before Tax||11,824||10,311||15%|
|Profit After Tax||6,484||6,223||4%|