Islamabad: Bank Alfalah is proud to announce that its credit rating has been elevated to ‘AAA’ by the Pakistan Credit Rating Agency (PACRA). This accolade is a testament to the bank’s financial strength and commitment to excellence.
Bank Alfalah extended heartfelt gratitude to its esteemed customers, loyal stakeholders, regulatory authorities and especially it’s committed colleagues, whose relentless dedication and hard work have made this achievement possible. Together, we continue to forge a path of enduring success and financial empowerment.
Bank Alfalah Improves its Asset Quality and Liquidity Boost Ratings
The bank industry is very competitive. The management must stay aware of this to stay relevant. The bank’s ownership and governance support its ratings.
The bank’s rating reflects its strong management and risk policies. The bank has grown through digital channels and increased market share. It offers many products and follows strategic plans.
BAFL is customer-focused. It has branches in 225+ cities and 1,000+ branches. It also has 350+ Islamic branches.
The bank does well in trade and remittances. It holds a 14.2% market share in remittances. This helps with revenue and deposit growth.
The bank’s digital presence is strong. It opened a digital lifestyle branch in Pakistan. This branch combines digital banking with lifestyle solutions.
The bank also opened digital sales and services centers. Digital use nearly doubled in the past year. AlfaMall is Pakistan’s first banking-led eCommerce site. It has over 730k users.
The bank’s lending market position is strategic. Gross performing advances rose to Rs740bn. The infection ratio is 4.8%. The loan loss coverage ratio is over 112%, which is good against delinquency.
The bank’s market share is about 5.9% in advances and 8.5% in trade. In 2023, the bank’s net profit doubled to Rs36bn. The cost-to-income ratio improved to 41.8% from 50% last year. By December 2023, the CAR rose to 16.7%.
Overall, the ratings show the bank’s improved performance, strong financial profile, good asset quality, and healthy liquidity. The bank is also involved in asset management, general insurance, and brokerage.
The bank plans to expand in the domestic market. It will focus on helping SMEs, boosting trade, and improving cash management and home remittances.
Ratings depend on meeting ‘AAA’ standards. Any drop in these standards will be seen negatively.
To read our blog on “Bank Alfalah launches Pakistan’s 1st digital agri-financing,” click here