Bank Alfalah recently came under the limelight as the financial institution announced its financial results for the previous year, with the bank earning profit after tax of PKR 7.9 billion in December, 2016, marking an increase of 5% from PKR 7.5 billion after tax in December 2015.
The financial institution also experienced a surge in earning despite lower interest rate that prevailed in the banking industry last year. As per the reports, the financial institution experienced an increase in Earnings per Share (EPS) by PKR 4.96 compared to PKR 4.73 that it reported in December 2015. However, it is pertinent to note that the bank failed to experience a significant gain in its total revenue as it remained at PKR 37.6 billion compared to PKR 37.5 billion in 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 expanding our impact further to touch the lives of as many people as possible” said Atif Bajwa President & CEO, Bank Alfalah.
Moreover, the total assets of bank at December 2016 stand at PKR 917 billion compared to PKR 903 billion in 2015. Also, deposit of the bank remained at PKR 640 billion with CASA (Current Account, Saving Account) ration improving to 83.3%. Adding to that, the financial institution also experienced a healthy lending activity with gross advances soaring up by 13% to PKR 396 billion in 2016.
It is important to understand that the competition in banking industry is soaring at a rapid pace. To support the claim, we recently reported that Meezan Bank posted a strong financial result for FY16 as it posted an unconsolidated profit of PKR 5.562 billion. In addition, HBL recently announced that it churned PKR 34.2 billion in profits after tax in FY16.
In any case, it is safe to assume that Bank Alfalah is making its efforts to deliver strong results and is well positioned to leverage the upcoming economic opportunities.