The Board of Directors of Bank Alfalah Limited in its meeting held on October 21, 2020, approved the Bank’s unaudited condensed interim financial statements for the period ended September 30, 2020.
The Bank’s operating profit at Rs. 20.614 billion showed a growth of 11.4% compared to the corresponding period of 2019 despite lockdown in the country and drop in the policy rate by 625 bps during the year.
Subjective provisioning, general provision buildup against advances and upfront impairment against equities contained profit after tax to Rs. 8.331 billion, which translates into earning per share of Rs. 4.69 (Sep 2019: Rs. 5.20).
On the revenue front, net markup income and non-markup income showed combined growth of 10.1% with strong contribution from capital gains on government securities of Rs. 2.185 billion and FX earning of Rs. 2.762 billion.
Fee and commission income remained muted due to lower transactions volume and regulatory waivers of branch and digital banking fees. Operating expenses were contained at 9.5% compared to same period last year.
This increase was largely driven by staff costs, IT support and maintenance fee, full year impact of new branches opened last year along with an overall impact of inflation and rupee devaluation.