Karachi: The Pakistan Credit Rating Agency Limited has affirmed the ratings of Bank Alfalah Limited's Additional Tier 1 Term Finance Certificates at PKR 7 billion, reflecting the bank's strong financial performance and strategic growth efforts. The ratings are supported by Bank Alfalah's substantial deposit base, strategic focus on deposit quality, and stable credit quality, ensuring its position as a leading institution in Pakistan's banking sector.
Bank Alfalah, which has grown significantly over nearly three decades, reported a deposit base of PKR 2,166.8 billion as of September 2025, up from PKR 2,136.9 billion in December 2024. This growth is attributed to a strategic shift in deposit mobilization, focusing on maintaining a positive spread critical for long-term sustainability.
The bank's performance is bolstered by its strong ownership and governance, a capable management team, and a prudent risk management framework. Bank Alfalah's expanding digital presence and diverse product offerings contribute to its growing market share, particularly in remittances and trade.
On the lending side, the bank reported gross performing advances of PKR 1,033.9 billion with a stable credit quality, reflected in an infection ratio of approximately 4.0% as of September 2025. Despite a decrease in net profit to PKR 21.4 billion from PKR 33.6 billion in the previous year, the bank maintains a solid Capital Adequacy Ratio of 17.94%, indicating a robust capital base.
Looking ahead, Bank Alfalah aims to enhance its SME and consumer banking sectors while expanding supply chain and cash management solutions. The bank's ratings depend on the continued strength of its key performance and risk indicators in line with 'AAA' benchmarks. Any significant deterioration in these areas could impact future ratings.