Bank Alfalah reported Rs 3.039 billion as profit before tax for the first quarter of 2015, registering an impressive increase of 78 percent as compared to the first quarter of 2014.
Profit after tax was recorded at Rs 1.982 billion in March 2015 as against Rs 1.128 billion earned in March 2014. Profit before provisions and taxation was Rs3.737 billion, representing an increase of 104 percent as against the corresponding period last year.
“The bank’s performance for the first quarter of 2015 indicates strong growth in profitability backed by core revenue growth. Despite the challenging environment that we operate in, Bank AlFalah continues to focus on diversifying its revenue streams to ensure maximum returns to all our stakeholders,” said Bank Alfalah President and CEO Atif Bajwa.
During the quarter, the net interest income increased by 59 percent as against the previous corresponding period. The overall net revenue earned by the Bank amounted to Rs 8.958 billion registering an increase of Rs 2.615 billion, a 41 percent increase over the corresponding period last year.
The bank’s cost to income ratio significantly improved at 58.3 percent as against 71.1 percent in the corresponding quarter reported.
During the first quarter of 2015, the bank continued its effort to improve Non-Performing Loans (NPL) coverage by considering a net charge of Rs 683.656 million against NPLs, after taking into account the impacts of FSV retirements. As a result, the bank’s NPL coverage ratio stands improved from 70 percent in December 2014 to 76.5 percent in March 2015.
As at 31 March 2015, the bank’s NPL ratio stands at 6.36 percent with NPLs coming down to Rs 18.687 billion as compared to Rs 19.412 billion at December 2014. Gross recoveries for the quarter were reported at Rs 698.334 million as against Rs 486.060 million for the comparative period last year, reflecting the bank’s continued focus on recoveries.
The bank’s total assets stand at Rs 742.193 Billion as of March 31, 2015.
The net investment portfolio of the bank depicts an increase of 4 percent from December 2014 and stands at Rs 336.189 Billion at the end of the quarter. The bank continues to hold investments in medium to long-term government bonds, which have led to a stable earnings stream.
