The Pak Banker - - FRONT PAGE -

Bank Al­falah's re­sults for the half year ended June 2015 re­mained pos­i­tive as its Profit af­ter tax for the half year pe­riod was re­ported at Rs. 3.704 bil­lion, as against Rs. 2.610 Bil­lion for the cor­re­spond­ing pe­riod last year re­flect­ing an im­prove­ment of 42 per­cent, de­spite a sig­nif­i­cant tax im­pact con­sid­ered in the cur­rent pe­riod on ac­count of re­cent changes en­acted to tax laws.

The bank reg­is­tered a profit be­fore pro­vi­sions and tax­a­tion of Rs. 7.787 bil­lion - an im­pres­sive growth of 85 per­cent, as against the cor­re­spond­ing pe­riod last year. Ex­pense man­age­ment con­trols were fur­ther strength­ened and re­sul­tantly the Bank's cost to in­come ra­tio stood im­proved at 58 per­cent. "The bank has de­liv­ered sound fi­nan­cial per­for­mance dur­ing the first half of the year. We are op­ti­mistic that we will con­tinue to cre­ate fur­ther value in the lives of the peo­ple we touch," said Atif Ba­jwa, Pres­i­dent & CEO, Bank Al­falah.

The bank's to­tal as­sets at the Bal­ance Sheet date stand at Rs. 785.800 Bil­lion, in­creas­ing by 6 per­cent from the year end po­si­tion. The Bank's CASA per­cent­age im­proved from 69 per­cent at De­cem­ber 2014 to 76 per­cent at June 2015. The Bank's lend­ing ac­tiv­ity re­mained healthy, and with Gross Ad­vances re­ported at Rs.319.177 Bil­lion, the Bank's ADR stands at 53 per­cent, bet­ter than the in­dus­try av­er­age lev­els in gen­eral.

As at 30 June 2015, the Bank's Non-per­form­ing loans (NPLs) ra­tio stands at 6 per­cent. The Bank's NPL cov­er­age has im­proved to 78 per­cent. The Pak­istan Credit Rat­ing Agency (PACRA), while main­tain­ing the long-term and short-term en­tity rat­ings of Bank Al­falah at "AA" (Dou­ble A) and "A1+" (A One Plus) re­spec­tively, has as­signed an im­proved "Pos­i­tive" out­look to these rat­ings. The pos­i­tive out­look cap­tures the Bank's abil­ity to en­hance its pro­file amidst a com­pet­i­tive bank­ing land­scape. Strength­en­ing of the Bank's cap­i­tal­iza­tion (mainly Tier 1), fur­ther gran­u­lar­ity in the ad­vances and de­posits book, ra­tio­nal­is­ing ad­vances con­cen­tra­tion, and sus­tain­ing as­set qual­ity were crit­i­cal as­pects that were con­sid­ered as part of the out­look en­hance­ment.

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