KARACHI: Bank Alfalah (BAFL) has earned a consolidated profit of Rs9 billion during October-December of 2023 (earnings per share at Rs5.7), up 120 per cent year on year and 2pc quarter on quarter.

“This takes the full year 2023 earnings to Rs36.5bn (EPS: Rs23.1) up 98pc,” said a press release.

The fourth quarter result came lower than industry expectations primarily due to higher-than-expected tax expenses.

The effective tax rate of the bank clocked in at 66pc in 4Q2023, compared to 51pc in 4Q2022 and 49pc in 3Q2023. For the full year 2023, the effective tax rate clocked in at 54pc.

Net Interest Income (NII) for 4Q2023 settled at Rs35bn, depicting a strong growth of 51pc year on year and 10pc quarter on quarter, attributable to the rise in asset yields.

Non-interest income grew by 128pc year on year and 69pc quarter on quarter to Rs10bn, primarily led by FX income of Rs2bn and gains on securities of Rs2bn recorded in 4Q2023.

The bank also announced a final cash dividend of Rs5 per share, bringing full year 2023 cash payout to Rs8 per share.

Published in Dawn, February 3rd, 2024