Bank Alfalah Limited (BAFL) Earnings Call Transcripts

Bank Alfalah Limited's Latest Earnings Call - March 31, 2026

In the earnings call for the fiscal year ended 2025, Bank Alfalah Limited reported a profit after tax of PKR 28 billion, reflecting a 7% increase in total income despite a challenging interest rate environment. The bank's deposit book grew by 16.8%, while gross advances saw a significant increase of over 30% when excluding the impact of ADR tax. Management indicated a cautious outlook for 2026, anticipating potential headwinds from geopolitical tensions and a possible reduction in remittances by up to 20%.

Reported metrics

Guidance from management

Management expects a reasonably good year for profitability in 2026 but acknowledges uncertainty due to geopolitical tensions and potential impacts on remittances.

What management said

[Foreign Language] Good afternoon to everyone. It's a pleasure to have you all join us in this call. And hopefully, we'll be able to give you a good briefing on the achievements of Bank Alfalah and an outlook for the near-term future. It's the first time that -- in a long time that I have personally also joined this corporate briefing, and it's a pleasure to do so. And I look forward to having a conversation and pos...

I think you're right that this started normalizing. And the expectation for this year is that this particular head of expenses, which is marketing for remittances, will come down to between -- on an annual basis, between PKR 4.5 billion to PKR 5 billion, which is a considerable reduction from last year, which we know there are reasons for. But this year, that -- this item is going to be normalized. And of course, n...

What analysts pressed on

Analysts expressed concerns regarding the high admin expenses and the impact of geopolitical risks on remittances. There were also questions about the sustainability of the bank's growth in a potentially rising interest rate environment.

Main topics on the call

• Deposit Growth — Bank Alfalah's deposit book increased by 16.8% during 2025, with a CAGR of 23% over the last five years. Management stated, "we started to focus more on averages and moved away from chasing end-of-period deposits."
• Advances Growth — Gross advances grew by over 30% in 2025, driven by a normalization of the credit environment. Management noted that excluding the impact of ADR tax, the growth was even more pronounced, stating, "our growth in 2025 was a...
• Interest Rate Environment — Management highlighted a decline in average interest rates by 8.3%, leading to spread compression. However, they managed to maintain their net interest margin due to strategic positioning in long-term bonds.
• Cost Management — Admin expenses rose by 38%, primarily due to increased branch network costs and marketing for remittances. Management expects marketing costs to normalize between PKR 4.5 billion to PKR 5 billion for the upcoming year.

Read the full Bank Alfalah Limited transcript (March 31, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 2 Bank Alfalah Limited earnings call transcripts on record, spanning August 8, 2025 to March 31, 2026. The most recent call on file is dated March 31, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

BAFL

Exchange

KASE

Country

PK

Sector

Financials

Industry

Banks

Calls on record

2

First call

August 8, 2025

Most recent

March 31, 2026