Islamabad: Bank Alfalah Limited reported a 39.6% surge in profit after tax for the first half of 2026, reaching PKR 21.32 billion, as reported by the Board of Directors in their meeting on July 30. The bank's financial results for the period ending June 30 also included the approval of a second interim cash dividend of PKR 1.5 per share, bringing the total dividend payout to PKR 3.0 per share for the six-month period.

According to Bank Alfalah, the increase in profitability was primarily due to capital gains, improved net interest income, and efficient management of operating costs. Earnings per share rose to PKR 6.76 from PKR 4.84 in the same period last year. The bank's total deposits reached PKR 2.66 trillion, with current deposits at PKR 1.15 trillion, reflecting the bank's strategy to enhance its non-remunerative deposit mix. Gross advances reached PKR 1.16 trillion, with growth across Consumer, SME, and Agriculture financing segments.

Net Interest Income increased by 5.0% due to improved spreads and growth in average current account deposits. Non Fund Income grew by 46.0%, driven by capital gains, foreign exchange income, and increased fee income from remittances and other services. The capital adequacy ratio stood at 17.4%, above regulatory requirements.

The bank also marked the inauguration of its 1,200th branch, highlighting its commitment to blending physical and digital banking solutions. Additionally, Bank Alfalah is issuing a Subordinated Tier II Term Finance Certificate worth PKR 20 billion, with a preliminary AAA rating from PACRA, to support its growth strategy and enhance shareholder returns.

Looking ahead, Bank Alfalah aims to continue its growth by expanding Consumer and SME lending, advancing its ESG agenda, and leveraging its low-cost deposit base. The bank plans to invest in digital transformation and operational efficiency to improve customer experience and create long-term value for shareholders.