Bank Alfalah Limited reported a 39.6% increase in profit after tax for the first half of 2026. Profit reached Rs21.32 billion, compared with Rs15.27 billion in the same period last year.
The board approved the results for the six months ended June 30 at a meeting on Thursday. Earnings per share rose to Rs6.76 from a restated Rs4.84 in the corresponding period of 2025.
The board also declared a second interim cash dividend of Rs1.50 per share, equal to 30%. This took the total half-year payout to Rs3 per share, or 60%. Bank Alfalah distributed Rs2.50 per share during the same period last year.
Capital Gains and Interest Income Lift Earnings
The bank linked the profit increase mainly to capital gains from active portfolio management. Improved net interest income and controlled operating costs also supported earnings.
Net interest income increased 5% as spreads improved and average current account deposits continued to grow. Financial statements showed net interest income of Rs70.80 billion, up from Rs67.43 billion a year earlier.
Non-funded income climbed 46% to Rs35.34 billion. Capital gains, foreign exchange earnings and fee income drove the increase. The bank also earned more from remittances, cards, trade business, government-to-person schemes and alternate delivery channels.
“Bank Alfalah remains committed to sustainable growth,” the lender said while outlining its plans for the coming period.
Deposits Reach Rs2.66 Trillion
Total deposits increased to Rs2.66 trillion by the end of June. Current deposits reached Rs1.15 trillion, supporting the bank’s strategy to strengthen its low-cost, non-remunerative deposit mix.
Gross advances reached Rs1.16 trillion. The bank recorded broad-based financing growth across consumer banking, small and medium enterprises, and agriculture.
Its unconsolidated balance sheet showed total assets of about Rs4.02 trillion on June 30. Investments stood at Rs2.34 trillion, while net advances reached Rs1.11 trillion.
The capital adequacy ratio remained strong at 17.4%. This level kept the bank comfortably above the State Bank of Pakistan’s regulatory requirements.
Bank Expands Network and Capital Base
Bank Alfalah recently opened its 1,200th branch. The lender said the milestone reflected customer confidence and its strategy of combining physical branches with advanced digital services.
The bank is also issuing a Rs20 billion subordinated Tier II term finance certificate. PACRA assigned the proposed instrument a preliminary AAA rating.
Bank Alfalah had received Rs18.045 billion as advance subscription money by June 30. It collected the remaining Rs1.955 billion after the reporting period.
The bank plans to expand consumer and SME lending while advancing its environmental, social and governance agenda. It will also continue investing in digital transformation and operational efficiency to improve customer experience and long-term shareholder value.
