KARACHI: Bank Alfalah (BAFL) announced its Q42024 result, reporting consolidated earnings of Rs4.64 billion (EPS of Rs2.94), reflecting a decline of 49 per cent YoY and 65 per cent QoQ.

According to Topline Securities, the result fell below industry expectations due to higher-than-estimated operating expenses. Despite the disappointing earnings, the bank declared a cash dividend of Rs2.5 per share, bringing the total 2024 dividend to Rs8.5 per share. Notably, the Q42024 dividend exceeded market expectations.

Administrative expenses surged by 44 per cent YoY and 30 per cent QoQ to Rs26.48 billion, primarily due to the adoption of IFRS 9.

Net interest income (NII) for Q42024 settled at Rs31.6 billion, down 10 per cent YoY and 6.0 per cent QoQ, driven by a decline in asset yields. Non-markup income rose 16 per cent YoY, driven by higher gains on securities, though it declined 11 per cent QoQ due to reduced FX income. BAFL’s FX income stood at Rs1.78 billion for Q42024, marking a 13 per cent YoY and 27 per cent QoQ decline. The bank’s effective tax rate for Q42024 reached 72 per cent, compared to 66 per cent in Q42023 and 53 per cent for the full year 2024.