Karachi: Bank Alfalah Limited (BAFL) experienced a 26% decrease in profitability for the year 2025, according to a recent analyst briefing. The decline, bringing the bank's net profit to PkR28.3 billion from PkR38.3 billion in the previous year, was attributed to a fourfold increase in marketing expenses and a 79% rise in provisioning expenses.

According to AKD Securities Limited, the bank's net interest income (NII) saw a 7% year-over-year increase, driven by strategic investments in fixed-rate assets and the expansion of current accounts. This led to an improvement in net interest margins (NIMs), which rose to 4.6% from 4.4% in the previous year, notwithstanding a decrease in interest rates.

Non-interest income also recorded a 7% increase, reaching PkR47.5 billion, bolstered by higher dividend and foreign exchange income. However, fee income experienced a 7% decline due to reduced commission income from remittances and the Benazir Income Support Program (BISP), following changes in the pricing mechanism by the State Bank of Pakistan (SBP).