July 30, 2026 (MLN): Bank Alfalah Limited (PSX: BAFL) reported a robust 40% increase in its consolidated net profit for the half-year ended June 30, 2026 (1HCY26), recording Rs21.14bn compared to Rs15.06bn in the corresponding period last year.
The bank also announced a dividend of Rs1.5 per share.
The primary driver of the half-year profit expansion was a massive 43% surge in non-mark-up income alongside a credit loss provision reversal.
While net mark-up income experienced a modest 5% year-on-year growth to Rs70.81bn (up from Rs67.45bn), total non-mark-up income surged to Rs35.15bn from Rs24.55bn in 1HCY25.
This non-interest growth was spearheaded by a 123% explosion in gain on securities, which reached Rs17.87bn (up from Rs8.01bn), and a 33% increase in foreign exchange income to Rs7.10bn.
On the operational expense side, operating expenses rose by 8% to Rs60.64bn, bringing total non-mark-up expenses to Rs61.69bn.
Despite the overhead increase, total income growth comfortably outpaced cost expansion, pushing the profit before provisions up by 26% to Rs44.28bn.
The bank absorbed a 25% higher taxation charge of Rs23.72bn for the half-year.
Supported by the complete absence of losses from discontinued operations (which had cost Rs83.52m last year), Bank Alfalah Limited securely closed the six-month period with its total net profit reaching Rs21.14bn.
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CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE HALF YEAR ENDED JUNE 30, 2026 (Rs.000) |
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|
Description |
2026 |
2025 |
change % |
|
Mark-up / return / interest earned |
173,709,018 |
188,398,347 |
-7.8% |
|
Mark-up / return / interest expensed |
(102,896,023) |
(120,947,512) |
-14.9% |
|
Net mark-up / return / interest income |
70,812,995 |
67,450,835 |
5.0% |
|
Fee and commission income |
8,303,540 |
7,807,361 |
6.4% |
|
Dividend income |
1,196,467 |
1,410,510 |
-15.2% |
|
Foreign exchange income |
7,102,422 |
5,351,308 |
32.7% |
|
Income from derivatives |
582,449 |
388,566 |
49.9% |
|
Gain on securities |
17,868,144 |
8,005,619 |
123.2% |
|
Share of (loss) / profit from associates |
(40,764) |
714,974 |
|
|
Other income |
140,210 |
869,337 |
-83.9% |
|
Total non-mark-up / interest income |
35,152,468 |
24,547,675 |
43.2% |
|
Total Income |
105,965,463 |
91,998,510 |
15.2% |
|
Operating expenses |
(60,636,023) |
(56,122,936) |
8.0% |
|
Workers' welfare fund |
(1,033,758) |
(821,570) |
25.8% |
|
Other charges |
(17,357) |
(9,557) |
81.6% |
|
Total non-mark-up / interest expenses |
(61,687,138) |
(56,954,063) |
8.3% |
|
Profit before credit loss allowance / provisions |
44,278,325 |
35,044,447 |
26.3% |
|
Reversal of / (charge) against credit loss allowance / provisions - net |
579,353 |
(896,645) |
-164.6% |
|
Profit before taxation from continuing operations |
44,857,678 |
34,147,802 |
31.4% |
|
Taxation |
(23,720,212) |
(19,004,909) |
24.8% |
|
Profit after taxation from continuing operations |
21,137,466 |
15,142,893 |
39.6% |
|
Loss from discontinued operations - net of tax |
- |
(83,517) |
|
|
Profit after taxation |
21,137,466 |
15,059,376 |
40.4% |
|
Earnings per share |
6.70 |
4.77 |
40.5% |