Karachi: Bank Alfalah Ltd. (BAFL) announced a significant increase in its net profit for the first quarter of the calendar year 2026, reporting a net profit after tax (NPAT) of PkR11.1 billion, translating to earnings per share (EPS) of PkR3.5. This marks a 58% rise compared to both the previous year and the previous quarter.
According to AKD Securities Limited, the earnings exceeded expectations, largely owing to capital gains amounting to PkR10.8 billion, contrary to anticipated losses. Alongside the financial results, the bank declared an interim cash dividend of PkR1.5 per share, aligning with predictions.
The bank’s net interest income (NII) for the quarter stood at PkR34.5 billion, showing a 4% year-over-year increase while remaining stable from the previous quarter. This was a result of a decline in mark-up earned being offset by a reduction in mark-up expensed.
Bank Alfalah's investments saw a decline, dropping by 33% year-over-year and 39% quarter-over-quarter to PkR1.3 trillion as of March 2026. Similarly, borrowings fell significantly by 87% year-over-year and 84% quarter-over-quarter to PkR133 billion. Deposits, however, increased by 22% compared to the same period last year, though they fell slightly by 1% from the previous quarter, standing at PkR2.5 trillion.
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