Bank sees positive results amid challenging economic environment in the country
Bank Alfalah Limited has registered an impressive growth of 27 percent in the Profit After Tax (PAT) in year 2018 despite a challenging operating environment in Pakistan while the financial experts of the bank have calculated positive economic prospects of the company and the country during the ongoing year 2019 as the bank has been playing an important role in Pakistan’s banking sector.
In the annual report in 2018 the bank registered an impressive growth of 27 percent in Profit After Tax and the bank’s Profit Before Taxation for the year 2018 reach at Rs 16.83 billion as against to Rs 13.705 billion previous year, explaining improvement of 22.9 percent. Profit After Tax is Rs 10.15 billion as compared to Rs 8.166 billion last year, enhancing by 24.3 percent.
Bank Alfalah Limited is the 5th largest bank in the country, on the basis of profitability and net assets, with a network of 649 branches across 205 cities in Pakistan and international presence in Afghanistan, Dubai, Bangladesh and Bahrain. Bank Alfalah also has a representative office in the UAE. The Bank is owned and operated through the Abu Dhabi group. The management of the bank offers various services such as financial solutions to consumers, corporations, institutions and governments by a broad spectrum of products and services, counting corporate and investment banking, consumer banking and credit, securities brokerage, commercial, SME, agri-finance, Islamic and asset financing solutions.
The financial experts also registered that the total Profit After Tax of the bank reaches at Rs 10.625 billion as compared to Rs 8.367 billion, enhancing by 27.0 percent. This translates into a Earning Per Share (EPS) of Rs 5.99 per share. The bank’s profit from discontinuing operation has grown from Rs 201.064 million to 474.952 million and includes reversal of provision amounting to Rs 443.898 million.
It is also recorded in the report that the present government inherited 11a platform with various issues in the shape of twin deficits, losses in Public Sector Entities (PSE), infrastructure problems and falling reserves. However, the new government seems committed towards addressing the macroeconomic issues, and generating higher growth and career opportunities. The experts also urged that the country is poised to recover with agriculture and industrial production gaining momentum. Looking ahead, rise to exports in the backdrop of worldwide economic recovery and improvement in local investment environment, backed through many measures of 11the government, supports favourable growth outlook. It is the time for the private sector of the country to prove its credentials as an ‘engine of growth’ by committing capital in growth sectors to generate wealth, create employment opportunities and sustain the economy.
The bank has a robust balance sheet with strong capital levels, sustainable earnings and inherent value across its businesses. The management has always demonstrated its ability to spot emerging opportunities and execute strategies to capture them. The financial experts also registered that the management is well-positioned to leverage all eventualities for profitable growth and value creation. It would continue its commitment to being a partner in country’s growth and development. Bank Alfalah moreover satisfies the customers’ demand by using other different measures. Bank Alfalah Limited is an emerging leader in the field of home remittances and offers beneficiaries a fast, reliable and free of cost service for receiving remittances from in worldwide network of partner banks, money transfer operators and exchange companies.
Money sent from abroad is instantly available at any branch of the bank across Pakistan. A Boston Consulting report says that smartphone users will equal bank accounts by 2020. It is the management’s core strategy to lead the digital wave and simplify banking for their customers by providing products and enabling secure payments by effective use of technology. Moreover, Alif is an innovatively designed branchless banking mobile wallet which features a debit card that is powered by UnionPay International. It was introduced to meet the objective of augmenting financial inclusion in the country, consequently reducing the gap between the banked and the unbanked population. Alif customers can use their cards at all ATM’s and POS machines within the country, and customers with level 2 wallets can use their cards globally also. Simultaneously, Bank Alfalah is also working on a number of measures that would widen the access channels for Alif users.