Bank Alfalah Posts PKR 15.27 Billion Profit in H1 2025

This translates into earnings per share

of PKR 9.68, compared to PKR 13.06

in the same period last year

Business Reporter

Karachi: Bank Alfalah Limited (BAFL) announced its financial results for the half-year ended June 30, 2025, reporting a profit after tax (PAT) of PKR 15.27 billion. This translates into earnings per share (EPS) of PKR 9.68, compared to PKR 13.06 in the same period last year.

The Board of Directors also declared a second interim cash dividend of PKR 2.50 per share (25%), bringing the cumulative payout for the year to PKR 5.00 per share (50%), up from PKR 4.00 per share (40%) in the first half of 2024.

Current Account Growth Offsets Rate Cuts

Despite the impact of a recent interest rate cut, the Bank managed to maintain profitability through current account growth and strategic balance sheet positions taken in the previous year. These actions not only supported net interest income (NII) but also created capital gain opportunities.

While changes in the pricing of certain products and remittance flows exerted pressure on margins, Bank Alfalah expects these factors to stabilize in the second half of the year.

Deposit Base Hits PKR 2.29 Trillion

Total deposits stood at PKR 2.29 trillion. The Bank’s focus on mobilizing current accounts and granular, sticky deposits helped create a stable and diversified deposit base. This approach improved the cost of deposits and bolstered NII in a declining rate environment.

Loan Book Surges 34.5% YoY

Bank Alfalah’s loan portfolio grew by 34.5% year-on-year, closing at PKR 1,057.72 billion. This was driven by a strategic pivot towards low-risk corporate lending and a gradual expansion of consumer finance, as interest rates became more favourable.

The Bank also continues to prioritize lending to the agriculture and SME sectors, offering tailored financing solutions to boost financial inclusion.

Strong Capital Position

As of June 30, 2025, Bank Alfalah maintained a robust Capital Adequacy Ratio (CAR) of 17.67%, well above the minimum regulatory requirement, reflecting its strong capital management practices.