Bank Alfalah Reports 43% Growth in Nine-Month Profit After Tax

Bank Alfalah Limited (BAFL) reported a 42.8% year-on-year increase in profit after tax to PKR 30.61 billion for the nine months ended September 30, 2026.

The Board of Directors approved the financial results. It also declared a third interim cash dividend of PKR 1.50 per share. As a result, the total dividend for the nine-month period reached PKR 4.50 per share.

This represents a cumulative payout of 90%, compared with PKR 3.75 per share, or 75%, in the corresponding period of 2025 (restated).

Meanwhile, earnings per share rose to PKR 9.71 from PKR 6.80 a year earlier. The bank attributed this growth to capital gains, improved net interest income and controlled expenses. It also maintained its core strategic priorities.

Deposits and Lending Expand

Bank Alfalah’s total deposits reached PKR 2.62 trillion by September 30, 2026. This marked year-on-year growth of 20.8%. Moreover, deposits remained above the PKR 2.5 trillion level.

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Current deposits also increased by 16.9% to PKR 1.10 trillion. At the same time, the bank’s gross loan book grew by 11.3% to PKR 1.20 trillion.

This expansion reflected growth across small and medium-sized enterprises (SMEs), agriculture and consumer financing.

Net Interest and Non-Funded Income Improve

Net interest income increased by 5.5% year on year. According to the bank, higher average current account balances supported this growth. Improved lending margins also contributed.

Furthermore, non-funded income rose by 31.1%. Timely capital gains from strategic portfolio rebalancing helped drive the increase. Higher foreign exchange income and diversified fee-based services also supported performance.

The bank recorded fee growth across several business areas. These included remittances, government-to-person (G2P) schemes and branch banking. Trade, cash management and wealth management services also contributed.

Cost Control Supports Performance

Bank Alfalah continued its cost-optimisation efforts during the period. Consequently, operating expenses increased by only 4.1%.

The bank plans to maintain disciplined cost management. In addition, it aims to improve operational efficiency and support sustainable growth. Customer-focused services and digital innovation will also remain important priorities.

Capital Position Remains Adequate

Bank Alfalah reported a capital adequacy ratio of 14.79% as of September 30, 2026. This reflected its reported capital position at the end of the period.

Overall, the bank recorded growth in profitability, deposits and lending during the first nine months of 2026. Higher non-funded income and controlled expenses also supported its financial performance.