Bank Alfalah has reported a strong financial performance for the year ended December 31, 2024, with a consolidated profit-after-tax (PAT) of Rs39.9 billion. This represents a 10% increase over the bank’s earnings in the same period the previous year.
The significant rise in profits was driven primarily by a surge in non-markup income, which included a substantial increase in commission income and impressive gains on securities. The bank’s earnings per share (EPS) stood at Rs25.27, compared to Rs23.15 in 2023.
In its financial statement shared with the Pakistan Stock Exchange (PSX) on Friday, Bank Alfalah also declared a final cash dividend for the year at Rs2.5 per share (25%), in addition to the three interim cash dividends already paid, bringing the total dividend payout for 2024 to 85% of the bank’s capital.
The bank’s net interest income showed a modest increase, rising nearly 1% to Rs126.78 billion in 2024, compared to Rs125.95 billion in the previous year. Meanwhile, non-interest income surged by almost 49%, reaching Rs45.78 billion, up from Rs30.78 billion in 2023. Fee and commission income also rose by 9%, totaling Rs17.96 billion.
A key highlight for the bank in 2024 was its massive gains on securities, which reached Rs14.02 billion, a striking increase from just Rs295 million in 2023. This growth in gains on securities contributed significantly to the overall profit increase.
Bank Alfalah’s total income for the year amounted to Rs172.56 billion, marking a 10% year-on-year growth. However, its non-mark-up expenses saw a sharp rise, increasing by 29% to Rs87.04 billion, largely due to a jump in operating expenses from Rs65.68 billion to Rs85.12 billion.
The bank’s profit before tax also showed an increase, standing at Rs85.25 billion for 2024, a rise of over 8%. Meanwhile, the tax expense for the year increased by 6%, totaling Rs45.38 billion, compared to Rs42.65 billion in 2023.
