Bank Alfalah posts 27.8pc growth in profits
KARACHI: Bank Alfalah Limited (BAFL) has announced a net profit of Rs10.99 billion for the year ended December 31, 2018, which is 27.8 percent higher than the profit of Rs8.6 billion in the previous year.
The earnings per share (EPS) clocked in at Rs6.20 for 2018 as against EPS of Rs4.88 in 2017. Bank Alfalah Limited (BAFL) also declared a final cash dividend of Rs1.5/share, which is in addition to interim dividend of Rs1.0/share already paid to the shareholders.
Net interest income of the bank for 2018 stood at Rs31.59 billion, up 8.7 percent, compared with interest income of Rs28.98 billion in 2017.
Non-interest income for the year under review stood at Rs11.13 billion, up 14 percent, as against income of Rs9.76 billion in the previous year.
“Earnings are up on the back of incredible control on the cost of funds as witnessed by almost flat growth in interest expenses for the year despite 425bps in overall rate hikes. However, given exposure to high-risk lending segments, net provisions arrived in on the higher side – a phenomenon which may pressure earnings going forward as well,” a report issued by Taurus Securities said.