KARACHI ( TARIQ REPORT )
Bank Alfalah has announced its financial results for the year ended 31 December 2016, with the Bank registering Profit after tax of Rs. 7.9 Billion in December 2016 as against Rs. 7.5 Billion in December 2015, improving by 5 percent.
Earnings per Share were reported at Rs. 4.96 as compared to Rs. 4.73 reported in December 2015.
“Bank Alfalah’s performance in 2016 reflects yet another year of sound financial results amidst a challenging business environment. During the year, we continued to create value for our shareholders and customers. We have strived to promote financial and digital inclusion in the country through various initiatives, and remain committed to expand our impact further, and to touch the lives of as many people as possible” said Atif Bajwa, President & CEO, Bank Alfalah.
The Bank’s total revenue remained at Rs. 37.6 Billion against 37.5 Billion last year. While we continued investing in innovation, the management of the Bank placed further controls over expenses. Resultantly, growth of non-markup expenses was restricted to 3.7 percent.
The Bank’s total assets at December 2016 stand at Rs. 917 Billion as against Rs. 903 Billion last year, Deposits remained at Rs. 640 Billion with CASA mix improving to 83.3 percent. The Bank’s lending activity remained healthy with Gross Advances improving by 13 percent to Rs. 396 Billion in December 2016.
The Bank has a gross ADR at 62 percent at year end 2016, one of the highest amongst peers. The Board of Directors of the Bank, cognizant of the fact that capital strengthening would be the key driver behind sustainable long term growth, has recommended retention of profits for the outgoing year.
As at 31 December 2016, the Bank’s Non-performing loans (NPLs) ratio stands at 4.8 percent, which is better than the industry average. This denotes very high quality of Bank’s lending portfolio with a significantly improved NPL coverage of 86 percent.
JCR-VIS Credit Rating Co. Ltd. has recently assigned the Bank a long term credit rating of ‘AA+’ (Double A Plus) and a short term rating of ‘A-1+’ (A-One Plus) with a stable outlook. The Bank is also rated ‘AA/A-1+’ (Double A/A-One Plus) with a positive outlook by PACRA. These ratings reflect Bank’s healthy financial risk profile, strong sponsors and strong capacity for timely payment of financial commitments.