Bank Alfalah Limited reported consolidated earnings per share of PKR 5.06 in 2QCY25, down 33% from PKR 7.59 in 2QCY24. This translates into profit after tax of PKR 8 Bn compared to PKR 12 Bn in SPLY. The bank declared a dividend of PKR 2.5 per share in 2QCY25, up 25% from PKR 2.0 in 2QCY24. Total revenue in 2QCY25 reached PKR 49.4 Bn against PKR 43.7 Bn in 2QCY24, an increase of 13%.
This was primarily driven by a 10% increase in mark-up income from PKR 31.3 Bn in 2QCY24 to PKR 34.4 Bn in 2QCY25. The bank saw its total deposits rise from PKR 2.13 Trn at the end of CY24 to PKR 2.29 Trn at the end of 2QCY25, an increase of 8%. Current accounts now stand at PKR 950 Bn, up 16% from PKR 817 Bn at the end of CY24. Going forward, the management expects the deposit growth of the first half to continue in the second half of CY25. In particular deposit growth for the full year is expected near 15% with current account deposit growth expected to outpace. Investments stood at PKR 1.64 Trn at June-2025, down 18% from PKR 2.00 Trn at the end of CY24.
This drop was attributed to the bank reducing borrowing and booking gains on its investments. Management highlighted that out of its portfolio of investments about 36% is in fixed rate securities including PIBs and Sukuks which have yields of about 14%. The bank has opened 133 new branches over the past year and 33 in the first half of 2025.
Management was of the view that expansion of the branch network would not be pursued as aggressively in the second half with a stronger focus on increasing visibility for existing branches which may need relocations in some cases. It was highlighted that 38% of the branch network is currently Islamic. It was also revealed that BAFL holds a 30% market share in the credit card segment along with 19% in auto loans and 21% in home loans.
Capital Adequacy Ratio stood at 17.4% down from 17.8% at the end of CY24. Advances to deposit ratio stood at 44% in Jun-25 down from 52% at the end of CY24. Moving forward, the management believes that the SBP is unlikely to cut rates further in this calendar year and as such their investment book was reduced in size due to a lack of opportunities. They acknowledged that this view is contradictory to market expectations of 50-100 bps cut.
Important Disclosures
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