BAFL

⚡ 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.

⚡ Flash Summary

Bank Alfalah’s unaudited condensed interim financial statements for the period ended September 30, 2025, reveal a profit after tax (PAT) of PKR 21.44 billion, resulting in earnings per share (EPS) of PKR 13.59. While revenue saw a YoY increase of 4.9%, reaching PKR 136.70 billion, profitability faced headwinds from declining benchmark rates and higher remittance-related promotional expenses. However, growth in average deposits and an improved current account (CA) mix offered some support, showcasing the bank’s efforts to balance challenges and opportunities.

📌 Key Takeaways

• 💰 PAT decreased to PKR 21.44 billion, impacted by declining benchmark rates.
• 📉 EPS declined to PKR 13.59 due to higher tax rates.
• ⬆️ Total revenue increased by 4.9% YoY to PKR 136.70 billion.
• ➕ Net Markup income grew by 4.5%, driven by cost of funds optimization.
• ⚠️ Fee and Commission Income decreased by 13.5% due to pricing pressures.
• 🏦 Customer deposits reached PKR 2.17 trillion, focus on current accounts.
• 📈 Gross advances increased by 23.9% YoY.
• ✔️ Infection ratio maintained at 4.0% through strong underwriting.
• ✅ Non-performing loans fully covered with a coverage ratio of 110.2%.
• 🛡️ CAR remained adequately capitalized at 17.94%.
• 💸 Interim cash dividend declared at PKR 2.50 per share (25%), a total of PKR 7.50 per share YTD.
• ⭐ Entity rating reaffirmed at ‘AAA’ (long-term) and ‘A1+’ (short-term) by PACRA.
• 📊 KSE-100 reached an all-time high of 165,494 points due to economic stability.
• 🌍 Pakistan’s credit rating upgraded to Caal from Caa2 by Moody’s
• 🌧️ Floods impacted Punjab and Northern areas, potentially affecting GDP growth and inflation.

🎯 Investment Thesis

Based on current results, a HOLD recommendation is warranted, as the announcement reflects both challenges and opportunities. The decline in profitability necessitates caution, although strong asset growth and capital position are positive. A price target can’t be accurately determined without a full assessment of market conditions, projected earnings and risk factors. Time horizon is medium term. More information about the bank’s outlook will be essential.

⚡ Flash Summary

Bank Alfalah’s unaudited condensed interim financial statements for the period ended September 30, 2025, reveal a profit after tax (PAT) of PKR 21.44 billion, resulting in earnings per share (EPS) of PKR 13.59. While revenue saw a YoY increase of 4.9%, reaching PKR 136.70 billion, profitability faced headwinds from declining benchmark rates and higher remittance-related promotional expenses. However, growth in average deposits and an improved current account (CA) mix offered some support, showcasing the bank’s efforts to balance challenges and opportunities.

📌 Key Takeaways

• 💰 PAT decreased to PKR 21.44 billion, impacted by declining benchmark rates.
• 📉 EPS declined to PKR 13.59 due to higher tax rates.
• ⬆️ Total revenue increased by 4.9% YoY to PKR 136.70 billion.
• ➕ Net Markup income grew by 4.5%, driven by cost of funds optimization.
• ⚠️ Fee and Commission Income decreased by 13.5% due to pricing pressures.
• 🏦 Customer deposits reached PKR 2.17 trillion, focus on current accounts.
• 📈 Gross advances increased by 23.9% YoY.
• ✔️ Infection ratio maintained at 4.0% through strong underwriting.
• ✅ Non-performing loans fully covered with a coverage ratio of 110.2%.
• 🛡️ CAR remained adequately capitalized at 17.94%.
• 💸 Interim cash dividend declared at PKR 2.50 per share (25%), a total of PKR 7.50 per share YTD.
• ⭐ Entity rating reaffirmed at ‘AAA’ (long-term) and ‘A1+’ (short-term) by PACRA.
• 📊 KSE-100 reached an all-time high of 165,494 points due to economic stability.
• 🌍 Pakistan’s credit rating upgraded to Caal from Caa2 by Moody’s
• 🌧️ Floods impacted Punjab and Northern areas, potentially affecting GDP growth and inflation.

🎯 Investment Thesis

Based on current results, a HOLD recommendation is warranted, as the announcement reflects both challenges and opportunities. The decline in profitability necessitates caution, although strong asset growth and capital position are positive. A price target can’t be accurately determined without a full assessment of market conditions, projected earnings and risk factors. Time horizon is medium term. More information about the bank’s outlook will be essential.