Karachi: Bank Alfalah Limited (BAFL) hosted a corporate briefing session today, revealing a 24% year-on-year increase in profit after tax for the first half of the financial year 2026, amounting to Rs21.3 billion. This period saw an earnings per share (EPS) of Rs6.76. For the second quarter alone, the bank reported a standalone profit after tax of Rs10.2 billion with an EPS of Rs3.23, along with a declared dividend of Rs1.5 per share.

According to JS Global, Bank Alfalah's net interest income for the first half of the calendar year 2026 increased by 5% year-on-year to Rs70.8 billion, despite prevailing lower interest rates. The non-interest income reached Rs35.3 billion, driven by capital gains and foreign exchange income. The bank maintained disciplined cost management, with administrative expenses rising 8% year-on-year, bolstered by a Rs579 million provision reversal and a lower effective tax rate of 52.8%.

The cost-to-income ratio fell to 56.6%, aided by increased income and reduced marketing spending on remittances. The bank aims to maintain a cost-to-income ratio of approximately 60%-65% in the short to medium term. The bank's deposit base expanded by 16.2% year-on-year to Rs2.7 trillion, with low-cost current accounts growing 20.9%. The market share of deposits stands at 6.1%.

Trade volumes saw a 6.2% year-on-year growth, with imports and exports amounting to USD$2058 million and USD$441 million, respectively. Net investments increased by 18% to Rs2.34 trillion, with a balanced investment portfolio comprising T-bills and fixed- and floating-rate securities. The management anticipates stable to slightly higher net interest income and net interest margin in the second half of the year, with the policy rate expected to remain at 11.5%.

Bank Alfalah continues to dominate the auto and home finance sectors, holding market shares of 21.2% and 21.4%, respectively. Gross advances represent a 7.3% market share, with significant growth seen in SME/agriculture and consumer advances. The management targets a 10-15% growth in advances over the next year, driven by key lending segments.

Branch expansion is ongoing, with the network now comprising 1,192 branches, aiming to reach 1,200 before a more selective expansion approach is adopted. The bank boasts a strong Capital Adequacy Ratio (CAR) of 17.41%, significantly above regulatory requirements, ensuring a robust buffer for future growth.