KARACHI - The board of directors of Bank Alfalah, in its meeting held the other day, approved the bank’s un-audited financial statements for the quarter ended March 31, 2018.

The bank’s profit before taxation for the quarter ended March 31, 2018 was recorded at Rs. 5.075 billion, as against Rs4.290 billion, for the corresponding period last year, improving by 18 percent. Profit after taxation improved by 17 percent to end at Rs3.264 billion for the quarter, as against Rs 2.788 billion for the corresponding period last year. This translates into earnings per share of Rs 2.02 versus Rs 1.74 per share for the corresponding period last year. The bank’s revenue for the quarter was reported at Rs10.419 billion, improving by 5 percent from the corresponding period last year. This is arising from both components of net interest income and non interest income which have improved by 2 percent and 16 percent respectively as against the corresponding period last year. Administrative expenses have remained in control, increasing by 6 percent as against the corresponding period last year. Net recoveries against non-performing advances improved from Rs 71 million for the quarter ended March 2017 to Rs 193 million for the current quarter, mainly on account of lower specific provisioning charge for the period of Rs. 223 million in 2018, as against Rs 539 million for the corresponding period last year. Recoveries for the period were reported at Rs 416 million, as against Rs 610 million for the previous period. As at March 2018, the bank’s coverage ratio stands at 89 percent. NPL ratio at the period end stands at 4 percent, and remains one of the lowest in the industry. As at March 31, 2018, the bank’s ADR stands at 67 percent.

The bank remains adequately capitalized. During the current quarter, the bank successfully closed its first ever additional Tier-1 Capital in the form of listed, perpetual, unsecured, subordinated, non-cumulative and contingent convertible debt instruments. The pre-IPO of Rs 6.3 billion had been successfully closed in January 2018, while the IPO of Rs 700 million was closed in March 2018. The proceeds from the issue will contribute towards the bank’s additional Tier-1 capital and are intended to be utilized towards enhancement of the bank’s business operations.