Corporate results: Bank Alfalah’s earnings up 42%

Financial institution made a profit of Rs1.7b in April-June, which is up 16%

KARACHI: Earnings of Bank Alfalah clocked up at Rs3.7 billion in the first six months of 2015, registering an increase of 42% over the same period of last year.

According to financial results released on Wednesday, Bank Alfalah made a profit of Rs1.7 billion in April-June, which is up 16% on an annual basis but down 13% on a sequential basis.

“The bank was able to expand its core income base by 5% on a quarterly basis (35% on a yearly basis) despite pressure on earning assets yield in April-June due to multiple discount rate cuts,” Shajar Capital Research Analyst Hamza Kamal said.

Volumetric growth in earning assets assisted the bank to post growth in its revenues, he added.

Non-fund income of Bank Alfalah increased 11% year-on-year in the second quarter to Rs2.5 billion. The two-time quarterly increase in the fee income contributed 27% to the total income as opposed to only 24% in Jan-Mar.

Recording of provision against super tax and application of flat tax resulted in the bank’s effective tax rate of 53% versus 33% in the first quarter.

Published in The Express Tribune, August 20^th,  2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.