Bank Alfalah Profit increased by 39.6% during the first half of 2026 as the bank reported strong earnings supported by higher capital gains, improved net interest income and effective cost management.
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The Board of Directors approved the financial results for the half-year ended June 30, 2026.
The board also declared a second interim cash dividend of PKR 1.5 per share (30%).
As a result, the total cash dividend for the six-month period reached PKR 3.0 per share (60%).
During the same period last year, shareholders received PKR 2.5 per share (50%).
Profit after tax increased to PKR 21.32 billion.
Meanwhile, earnings per share rose to PKR 6.76, compared with PKR 4.84 a year earlier.
Deposits and Lending Expand
The bank continued to strengthen its balance sheet.
Total deposits increased to PKR 2.66 trillion.
Current deposits reached PKR 1.15 trillion, reflecting continued growth in low-cost deposits.
Gross advances also climbed to PKR 1.16 trillion.
Consumer, SME and agriculture financing all contributed to the increase in lending.
Furthermore, net interest income (NII) grew by 5% due to improved spreads and higher average current account deposits.
Non-funded income increased by 46%.
Higher capital gains, foreign exchange income and fee-based business supported this growth.
Capital Position Remains Strong
Bank Alfalah maintained a capital adequacy ratio of 17.4%.
The ratio remained comfortably above the regulatory requirement.
During the period, the bank also inaugurated its 1,200th branch.
The milestone reflects its strategy of combining physical branches with digital banking services.
Tier II TFC Attracts Investors
The bank is issuing a PKR 20 billion Subordinated Tier II Term Finance Certificate (TFC).
PACRA assigned the instrument a preliminary AAA credit rating.
Investor demand remained strong throughout the offering.
By June 30, 2026, subscriptions reached PKR 18.045 billion.
After the reporting period ended, the bank received the remaining PKR 1.955 billion, completing the full issue.
Focus Remains on Long-Term Growth
Looking ahead, Bank Alfalah plans to expand its consumer and SME financing portfolios.
The bank will also continue advancing its environmental, social and governance (ESG) initiatives.
In addition, it intends to invest further in digital transformation and operational efficiency.
Management said these initiatives will strengthen customer experience and create sustainable long-term value for shareholders.
