Bank Alfalah profit jumps 40% to Rs21.3bn in H1; declares second interim dividend of Rs1.5.
Bank Alfalah Limited reported a robust 39.6 percent rise in unconsolidated profit after tax to Rs21.33 billion for the half year ended June 30, 2026, up from Rs15.27 billion in the corresponding period last year.
Earnings per share (EPS) improved to Rs6.76 compared with Rs4.84 previously. The board recommended a second interim cash dividend of Rs1.50 per share (30 percent), taking the cumulative half-year payout to Rs3.00 per share or 60 percent.
Net Interest Income and Non-Markup Income Both Strengthen
Net mark-up income grew 5 percent to Rs70.80 billion. Non-mark-up income surged 46 percent to Rs35.34 billion, driven largely by a sharp rise in gain on securities to Rs17.87 billion from Rs8.39 billion in the prior year.
Fee and commission income alongside foreign exchange revenue also contributed positively. Overall total income expanded 15.8 percent to Rs106.14 billion.
Lower Provisions and Controlled Expenses Support Bottom Line
The bank recorded a net reversal of credit loss allowance of Rs579 million, compared with a net provisioning charge of Rs897 million last year. Operating expenses rose to Rs60.47 billion but remained well contained relative to top-line income growth.
Profit before tax climbed 33 percent to Rs45.20 billion. Taxation was higher in absolute terms, yet after-tax net profit still expanded nearly 40 percent.
Second-Quarter Performance Remains Healthy
In the April-June quarter, profit after tax rose 24 percent year-on-year to Rs10.20 billion. Quarterly EPS stood at Rs3.23 against Rs2.61 a year earlier.
The sequential and year-on-year growth reflects sustained operational momentum across both core commercial banking and treasury desks.
Balance Sheet Expansion and Dividend Timeline
Total assets increased to Rs4.02 trillion. Deposits expanded to Rs2.66 trillion while net advances stood at Rs1.11 trillion. Total investments reached Rs2.34 trillion.
Share transfer books will remain closed from August 13 to 16, 2026. Shareholders on the register as of August 12, 2026, will be entitled to receive the second interim dividend. The full quarterly report will be transmitted via PUCARS and made available on the company website.
