Bank Alfalah Limited (BAFL) today announced a decline in its annual profitability for 2025, with earnings per share falling to PKR 17.97 from PKR 24.30 the previous year, alongside a proposal for a 2-for-1 stock split aimed at increasing share liquidity.
The financial results for the year ended December 31, 2025, approved by the Board of Directors on February 13, 2026, revealed a profit after tax (PAT) of PKR 28.34 billion.
In conjunction with the results, the board declared a final cash dividend of PKR 3.00 per share (30%). This brings the total dividend payout for the year to PKR 10.50 per share, equivalent to a 105% payout.
A significant recommendation from the board is the sub-division of the company”s shares. If approved, the 2-for-1 stock split will result in shareholders receiving two shares for each share they currently hold, a move designed to improve accessibility for investors.
Despite the drop in net profit, the lender reported substantial growth in its deposit base, which closed at PKR 2.49 trillion, a year-on-year increase of 16.8%. The institution attributed this to a revised strategy focused on building a long-term, stable deposit base, which helped its net interest income grow by 7.1% even in a lower interest rate environment.
The bank’s gross advances stood at PKR 1.15 trillion. The report noted a strategic optimisation of its portfolio during the year, with notable growth in its Consumer, SME, and Agri lending segments.
Bank Alfalah maintains a Capital Adequacy Ratio (CAR) of 15.87% as of year-end 2025, remaining comfortably above the minimum regulatory requirement.
On the corporate social responsibility front, the bank’s board approved an additional USD 5 million (PKR 1.4 billion) for the rehabilitation of communities affected by the 2025 floods. This raises the institution”s total contribution to flood relief since 2022 to USD 15 million (approximately PKR 4.2 billion).
Furthermore, the bank invested USD 1.6 million (PKR 470 million) in 2025 through its sustainable CSR and Islamic charity initiatives, part of a total USD 3.0 million (PKR 870 million) invested since 2022 to support community development in Pakistan.
The financial institution also received accolades at the Pakistan Banking Awards in 2025, being named Best Bank for Digital Excellence for the fourth consecutive year and winning Best Bank for Customer Engagement for the seventh time.
Looking ahead, Bank Alfalah stated its focus remains on expanding its Consumer and SME lending, funded by a low-cost deposit base, while accelerating its digital transformation to enhance customer experience and deliver sustainable shareholder returns.