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FINANCIAL PERFORMANCE (FY04-FY07) The bank's performance has generally improved in all segments in FY'07. Bank Alfalah Limited (BAFL) declared profit after tax of Rs 3.1 billion with earnings per share of Rs 4.82 in FY07 compared to profit after tax of Rs 1.7 billion with earnings per share of Rs 2.71 in FY06. A significant growth of 77.6% has been registered during FY07 on the back of capital gain of Rs 1.7 billion on sale of Warid Telecom (Pvt) Limited. The bank also declared a cash dividend of Rs 1.50 per share for FY07 and 23.0% bonus share.
Net interest income of the bank registered a growth of 53.8% to Rs 9.1 billion in FY07 compared to Rs 5.9 billion in FY06 mainly on the back of interest earned on the deposits to customers. (Total deposits of the bank grew by Rs 33.6 billion during FY07).
In FY07, the bank sold 48.8 million of its holdings in Warid Telecom (Pvt) Limited out of 316.7 million to Singapore Telecommunication Limited (Singtel) at a price of $37.67m. Due to this, the bank earned Rs 1.7 billion of capital gain during FY07, which resulted in the growth of 87.3% in non-interest income. Non-interest income climbed to Rs 6.0 billion in FY07 as compared to Rs 3.2 billion in FY06.
In terms of profits, the Pakistani banking sector ranks amongst the top ten in the world. Bank Alfalah has had its share in the phenomenal profit growth of the banking sector. There has been a change in composition of earnings assets with a shift from advances to higher investments in FY07. This shift is in line with the overall industry trend.
A positive growth of deposits has somewhat succeeded in improving the ROD of the bank, which had declined in 2006. The deposits of Bank Alfalah have shown ...