⚡ Flash Summary

Bank Alfalah Limited (BAFL) has announced the withholding of cash dividend payments due to the non-availability of Computerized National Identity Card (CNIC) and/or International Bank Account Number (IBAN) details for some shareholders. The announcement pertains to the third interim cash dividend of Rs. 2.5 per share (25%) for the 3rd Quarter/Nine months ended September 30, 2025. The share transfer books are closed from November 5, 2025, to November 6, 2025. Shareholders are requested to submit their CNIC and IBAN details to ensure timely dividend payments.

📌 Key Takeaways

• 📢 BAFL is withholding cash dividend payments for shareholders without valid CNIC and/or IBAN details.
• 💰 The dividend is Rs. 2.5 per share, which translates to 25%.
• 🗓️ This dividend is for the 3rd Quarter/Nine months ended September 30, 2025.
• 🔒 Share transfer books are closed from November 5, 2025 to November 6, 2025.
• 🏦 The dividend will be directly credited into the bank accounts of entitled shareholders.
• 📜 This is in compliance with the Companies (Distribution of Dividends) Regulations, 2017.
• ✉️ BAFL has already sent letters to shareholders lacking the required information.
• 🔄 Shareholders are reminded to submit their CNIC and IBAN details as soon as possible.
• 💸 Withheld dividend amounts will be released electronically within 15 days of receiving the necessary information.
• 📝 Shareholders need to submit a legible copy of their CNIC along with the information.
• 🏢 Information should be submitted to CDC Participant (Broker)/Investor Account Services (if shares are held in electronic form).
• 📍 Alternatively, information can be sent to the Bank’s Share Registrar, F.D. Registrar Services (Pvt.) Ltd.

🎯 Investment Thesis

HOLD. The announcement has no real impact on Bank Alfalah’s financials. We maintain our HOLD recommendation, with a price target of 60 PKR and a time horizon of 12 months. We expect that the regulatory compliance will take 3 to 6 months to be complete. Our estimates remain unchanged.