Bank Al-Falah reports over 200% growth in profit
ISLAMABAD: Bank Al-Falah Limited today reported more than 200% growth in its profit for six months of 2023.
The bank posted a profit worth Rs18.63 billion, depicting a surge of 2.13x YoY, in comparison with Rs8.76bn profit the BAFL reported in the same period in 2022. The bank shared its financial results with the Pakistan Stock Exchange and its shareholders on Thursday.
The board of directors of BAFL announced an interim cash dividend for the period ended June 30, 2022, at Rs3 per share i.e. 30%.
The bank witnessed an increase of 84.10% in its net interest income (NII) to stand at Rs59.13bn, compared to SPLY. The surge in NII is due to a jump in interest-earning (Rs176.48bn), up by 2.14x YoY, according to a Mettis Global report.
During the period under review, the bank’s Non-Markup Income (NMI) also rose by 19.94% YoY to Rs13.65bn. It is an outcome of a significant rise in fee and commission income, Foreign Exchange Income, and gain from derivatives to clock in at Rs6.98bn, Rs5.11bn and 688.99 million, depicting a gain of 31.71%, 5.24% and 6.82x respectively.
In addition, the bank incurred a provision reversal of Rs5bn during the review period compared to the Rs4.04bn in the corresponding period last year.
The total non-interest expenses increased by 41.42% to Rs31.52bn in 1HCY23 compared to Rs22.29bn in 1HCY22.
The increase was attributed to the massive jump of 40% YoY in operating expenses from Rs21.85bn in 1HCY22 to Rs30.57bn in 1HCY23,
On the tax front, the bank paid Rs17.63bn, 2.10x higher than the amount paid in 1HCY22.
