Karachi, April 18, 2025 — Bank Alfalah Limited (BAFL) announced its financial results for the quarter ended March 31, 2025, reporting a profit after tax of PKR 7.040 billion. The earnings translate into an Earnings Per Share (EPS) of PKR 4.46. The bank’s Board of Directors, in a meeting held on April 17, 2025, also approved an interim cash dividend of PKR 2.5 per share (25%), up from PKR 2.00 per share (20%) during the same period last year.
The bank demonstrated strong financial resilience amidst a challenging macroeconomic environment marked by a sharp 1,000 basis points cut in the policy rate from the same period last year. Despite the rate reduction, BAFL successfully grew its net interest income by 6% year-on-year (YoY), supported by a growing base of average current deposits and effective balance sheet management.
Non-markup income provided further strength, rising by 13% YoY. This increase helped mitigate pressure on certain fee-based income streams, which were impacted by shifting market dynamics. Operating expenses rose during the quarter, attributed to branch network expansion, higher staff compensation, and increased marketing expenditure in the remittance segment.
As of March 31, 2025, the bank’s total deposits stood at PKR 2.019 trillion. The bank strategically realigned its deposit base to optimize funding costs, focusing on enhancing its zero-cost current account (CA) deposit mix, which showed notable improvement. However, gross advances declined to PKR 0.927 trillion from December 2024, primarily due to the scheduled maturity of short-term loans.
Bank Alfalah continues to demonstrate sound capital discipline, reporting a Capital Adequacy Ratio (CAR) of 17.64%—well above the minimum regulatory requirement.
In its official statement, the bank reaffirmed its commitment to a cautious and disciplined strategic approach, emphasizing resilience, adaptability, and long-term value creation. The bank remains confident in its ability to navigate macroeconomic headwinds while continuing to deliver value to its shareholders.
