Pakistan (Muhammad Yasir) The Board of Directors of Bank Alfalah Limited (BAFL), in its meeting held on February 2, 2023, approved the Bank’s financial results for year ended December 31, 2022.
The Bank posted profit after tax growth of 28.1% compared to last year, standing at Rs. 18.206 billion. This translates into earnings per share (EPS) of Rs. 10.27 (2021: Rs. 8.00).
The exceptional performance of our team in executing the strategy and diversified product suite, resulted in Bank Alfalah achieving an impressive deposit growth of 30.5% in 2022 which brought the deposit base to Rs. 1.487 trillion.
The Bank’s gross advances reached Rs. 765.693 billion, showing a growth of 9.5%. Despite challenging market fundamentals, the bank’s credit performance was strong across all segments and products. Our non-performing loans ratio stood at 4.0% due to some prudent classifications whereas non-performing loans remain fully covered with coverage at 107.6%, including general provisions. Moreover, the Bank, in light of uncertain economic conditions, has taken a general provision against the high-risk and flood impacted credit portfolio, which is economically vulnerable.
The Bank remains adequately capitalized with CAR at 13.83%, well above the regulatory requirement as at December 31, 2022.
The Board of Directors has declared final cash dividend of Rs. 2.5 per share (25%). This is in addition to an interim cash dividend of Rs. 2.5 (25%).
Bank Alfalah has also been leading the way on the Corporate Social Responsibility front by embarking on a comprehensive programme aimed at giving back to the community after the recent devastating floods. In 2022, the Bank’s Chairman, His Highness Sheikh Nahayan Mabarak Al Nahyan, and the Board of Directors, graciously announced a donation of USD 10 million for flood relief, rehabilitation and rebuilding efforts, an unprecedented action in the private sector domain to counter the biggest calamity to hit Pakistan in recent history. Rescue and relief efforts have largely been completed, while rehabilitation work will continue in 2023.
2023 marks the 25th year of Bank Alfalah in Pakistan. During the last 25 years, the Bank has been a leading facilitator of national economic development, a trusted partner for SME lending, and a leading player in trade, cash management, home remittance and bank-at-work. Today, Bank Alfalah is a tech savvy bank with strategic focus on accessibility and digital inclusion. The Board’s commitment has made Bank Alfalah a forward looking and resilient organization, and a reliable and dependable bank with a focus on long-term value creation.