Bank Alfalah Reports 43% Profit Growth to Rs30.61 Billion

Bank Alfalah Limited (BAFL) reported a 42.8% increase in profit after tax to Rs30.61 billion for the nine months ended September 30, 2026, compared with the same period last year.

The bank’s earnings per share rose to Rs9.71 from Rs6.80 in the corresponding period of 2025. Its Board of Directors also declared a third interim cash dividend of Rs1.50 per share, bringing the total dividend for the nine months to Rs4.50 per share.

The cumulative payout represents 90% of the share’s face value, compared with Rs3.75 per share, or 75%, in the same period last year, as restated.

According to the bank, higher capital gains, improved net interest income and controlled operating expenses supported its profit growth.

Deposits Cross Rs2.6 Trillion

Bank Alfalah’s total deposits grew 20.8% year-on-year to Rs2.62 trillion, remaining above the Rs2.5 trillion mark.

Current deposits increased 16.9% to Rs1.10 trillion, strengthening the bank’s deposit base. Meanwhile, its gross loan book expanded 11.3% to Rs1.20 trillion.

The bank attributed lending growth to expansion in small and medium-sized enterprises (SMEs), agriculture and consumer financing.

Net Interest Income and Non-Funded Income Improve

Net interest income increased 5.5% year-on-year, supported by higher average current account balances and improved margins on credit.

Non-funded income recorded stronger growth of 31.1%. The increase reflected capital gains from strategic portfolio rebalancing, higher foreign exchange income and growth in fee-based services.

These services included remittances, government-to-person (G2P) payment schemes, branch banking, trade, cash management and wealth management.

Cost Controls Support Profitability

Bank Alfalah continued its cost-optimisation efforts, limiting the growth in operating expenses to 4.1%.

The bank said it would maintain its focus on operational efficiency and disciplined cost management while pursuing sustainable growth. It also plans to strengthen its competitiveness through customer-focused services and digital innovation.

Capital Position Remains Adequate

The bank reported a capital adequacy ratio of 14.79% as of September 30, 2026.

The latest results reflect growth in profitability, deposits and lending, supported by higher non-funded income and controlled expenses during the first nine months of 2026.