Bank Alfalah Experiences 4% Growth in Profits!

Bank Alfalah is all gearing up at soaring speeds to reach a high profitability level. It has moved another 4% in the total profits it earned at Rs. 6.266 billion which was in the last nine months of this year.

As for the earning per share of the bank, it is said to have reached Rs. 3.93 compared to the previous year’s Rs. 3.80.

Moving on to the markup – Net, it was reported to have increased by 7% – Rs. 21.352 Billion after provisions, compared to the last year. As for the profit after tax, it was Rs. 10.621 billion, increasing by 3%.

Not just this, the current quarter witnessed tremendous investments coming in high yielding bonds of government which were later to be replaced with quarters giving comparatively lower returns in contrast with the current market rates. This impacted the bank’s revenue but it still lingered on with improvement in interest of 2% during this period. Their working expenses also experienced a growth of 7%.

With the aim to put their mind on lessening the cost of funds, the bank has worked on deposits costing high while also putting effort to enhance the making of CASA deposits.

Though the deposits totaled and remained the same in the period of December 2015, the CASA mix experienced a growth of 5% to reach 79 percent from 74 percent. This has impacted the margins of banks in contrast with low level of rate of interest. While this remained quite low, bank Alfalah’s gross ADR at the end of the period remains at 54% whereas the NPLs – Non-performing loans reached to 83 percent as before.

As of today, the bank is adamant to provide unequalled banking services to its reputed customers.

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