Bank Alfalah maintains operating profit at Rs 25.5bn
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Subjective provisioning and general provision buildup against advances contained profit after tax at Rs 10.475 billion
The Bank Alfalah Limited posted operating profit of Rs 25.468 billion, marginally higher than last year, despite lockdown in the country and the 625 bps drop in policy rate during the year. Subjective provisioning and general provision buildup against advances contained profit after tax at Rs 10.475 billion, which translates into earnings per share of Rs 5.89 compared to Rs. 7.15 of 2019.
The Board of Directors of the Bank announced this in its meeting held on February 3, 2021, approved the Bank’s audited financial statements for the year ended December 31, 2020.
The Bank wide range of policy interventions were enacted by the central bank and the government to provide impetus to the economy. Under these schemes, banks were allowed to defer / restructure principal and markup. Accordingly, the Bank deferred / restructured loans with principal over Rs 52 billion and consequently, it has taken a general provision of Rs 4.250 billion against borrowers availing such relaxations. Also, the Bank has provided over Rs 30 billion of fresh loans backed by SBP refinance scheme (wages and salaries, combating covid and temporary economic relief finance) to over 300 entities.
Total deposits and gross advances were reported at Rs 881.767 billion and Rs 600.899 billion, growing by 12.7% and 13.4% respectively. Gross advances to deposits ratio stood at 68.1%. CASA ratio improved to 79.8%, while the current account mix reached a high of 46.6%. We continued to support our credit clients throughout this challenging period. The Bank has non-performing advances of Rs. 25.860 billion and the NPL ratio stands at 4.3%. Provision coverage ratio increased to 91.2% at year end.
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