Bank Alfalah announces profit of Rs7bn for Q12025

KARACHI: Bank Alfalah announced its profit after tax (PAT) of Rs7.04 billion for Q1 2025 in a statement released on Thursday. This translates its earnings per share (EPS) to Rs4.46.

The Board of Directors of Bank Alfalah Limited (BAFL), in its meeting held on Thursday, approved the bank’s financial results for the quarter ended March 31, 2025. Alongside the results, the board announced an interim cash dividend of Rs2.5 per share (25 per cent), compared to Rs2 per share (20 per cent) in the same period last year.

Despite a 1,000 basis points (bps) reduction in the policy rate from the same period last year (SPLY), the bank successfully maintained spread stability through strategic balance sheet positioning and growth in average current deposits. As a result, net interest income rose by 6.0 per cent YoY. Non-markup/interest income also saw healthy growth of 13 per cent YoY, helping offset pressure on fee-based revenues from certain product segments.

Operating expenses increased, driven by continued network expansion, staff compensation adjustments, and higher marketing spend, particularly in remittances.As of March 31, 2025, the bank’s deposits stood at Rs2.019 trillion, reflecting a strategic focus on optimising funding cost and improving the mix of zero-cost current account (CA) deposits. Gross advances decreased to Rs0.927 trillion due to the maturity of short-term loans disbursed at year-end.