Bank Alfalah doubles annual profit, boosts dividend

KARACHI: Bank Alfalah Limited on Thursday reported a more than 100 percent increase in its annual profit after tax for 2023, driven by strong growth in deposits, advances and fee income.

"The bank posted a profit after tax of Rs36.456 billion as compared to Rs18.206 billion last year, showing over 100 percent growth," the bank said in a statement.

Earnings per share jumped to Rs23.12 from Rs10.27. The board of directors declared a final cash dividend of Rs5 per share, or 50 percent, bringing the total dividend for the year to Rs8 per share, or 80 percent.

Deposits closed at Rs2.085 trillion as at December 31, 2023, representing a 40.2 percent increase over the previous year. "This performance is a clear depiction of the Bank’s focus on improving the deposit base while having customer-centricity at the forefront, and a diversified product suite catering to market demand," the statement said.

The bank reported its advances at Rs777.287 billion while upholding robust credit discipline amid challenging market conditions, and has sufficient provision against non-performing loans with a coverage of 112.2 percent, including general provision.

The bank exercises sound capital management and remains adequately capitalised with CAR at 16.74 percent as at December 31, 2023, well above the regulatory requirement.

The statement said the Bank Alfalah delivered exceptional performance during 2023. "The bank has crossed significant milestones of 1,000 branches and Rs2 trillion in deposits, improving its industry ranking in terms of deposit base, total assets and branch footprint."

Bank Alfalah’s foremost goal is to deliver unparalleled services to its valued customers, grow market share, and extend its footprint while expanding its reach to a broader audience. Responding to ever-changing business dynamics, the bank is expediting its digital transformation journey, and also opened Pakistan’s first ‘Digital Lifestyle’ branch in 2023, the statement added. "As a testament to its performance, the Bank received many awards, including ‘Best Digital Banking’ by PBA and ‘Top 25 Companies’ by PSX. Moving forward, the Bank is looking to enhance its customers’ experience further while leveraging core competencies." It remains poised for adaptability, resilience, and sustained value creation, ensuring enduring shareholder value and continued excellence in the face of evolving challenges.

PRL sees seven-fold rise in half-year earnings

Pakistan Refinery Limited (PRL) reported a seven-and-a-half-fold increase in its half-year net profit on Thursday, boosted by higher sales and production of refined products.

The company, which operates the country’s largest oil refinery, said its net profit for the six months ended Dec. 31 rose to Rs6.508 billion from Rs759.095 million a year earlier.

Earnings per share jumped to Rs10.33 from Rs1.20, while gross sales climbed to Rs182.188 billion from Rs130.349 billion.

The company did not declare any dividend for the period.

PRL said it achieved its highest-ever half-yearly production of high-speed diesel and MS 92, reaching 376,653 metric tons and 152,974 metric tons, respectively, reflecting its commitment to meeting market demand and setting industry benchmarks.

For the quarter ended Dec. 31, the company posted a net profit of Rs2.029 billion, compared with a net loss of Rs268.045 million in the same quarter of 2022.

Earnings per share for the quarter were Rs3.22 , against a loss per share of Rs0.43 a year ago.

“This extraordinary financial achievement underscores the company’s robust operational efficiency and strategic initiatives,” PRL said in a statement to the Pakistan Stock Exchange.

The refinery attained a significant production milestone by recording its highest-ever half-yearly production for High-Speed Diesel (HSD) and MS 92, reaching 376,653 Metric Tons and 152,974 Metric Tons, respectively.

This production performance demonstrates PRL's commitment to meeting market demands and setting industry benchmarks.

In August 2023, the government introduced the Refining Policy for Existing/Brownfield Refineries, 2023, providing refineries with incremental incentives for upgrading facilities and producing eco-friendly fuels meeting Euro-V specifications.

PRL, aligning with this policy, has entered into necessary agreements with the Oil and Gas Regulatory Authority (OGRA) for Refinery Expansion and Upgrade Project (REUP) and opening of Escrow Account, thus positioning itself for future incentives.

PRL's REUP remain a top priority, with significant progress in technical licensing, engineering agreements, and Front-End Engineering Design (FEED) work. The company is committed to expanding its crude processing capacity from 50,000 to 100,000 barrels per day.

Furthermore, United Energy Group (UEG) of China is carrying out due-diligence of PRL for potential strategic investment, following the signing of a Memorandum of Understanding (MoU) in October 2023 in Beijing in the presence of the Pakistani Prime Minister. "The board expressed gratitude to all stakeholders, especially the government, for their continued support, acknowledging their pivotal role in the ongoing success and expansion of the refinery."