The Bank Alfalah Limited (PSX: BAFL) has witnessed a 40% rise in its consolidated profit, which amounted to Rs21.14 billion during the half-year ended June 30, 2026 (1HCY26). The Bank Alfalah profit for the 1HCY26 period was Rs21.14 billion as compared to Rs15.06 billion in the similar period in the previous year. Additionally, the bank declared a dividend of Rs1.5 per share

What Drove the Bank Alfalah 1HCY26 Profit Jump

The main reason behind the growth in profit in the Bank Alfalah 1HCY26 was the huge 43% increase in the non-mark-up income along with the reversal of the credit loss provision. Although the net mark-up income increased only 5% on a year-over-year basis to reach Rs70.81 billion from Rs67.45 billion, the non-mark-up income was the one that showed strong gains.

The total non-mark-up income surged to Rs35.15 billion, marking an impressive rise from the Rs24.55 billion seen in 1HCY25. The reason for such growth was because the gain on securities witnessed an amazing jump of 123%, rising to Rs17.87 billion from Rs8.01 billion last year. The foreign exchange income grew to Rs7.10 billion, marking a growth of 33%, and this added another pillar of strength to the non-mark-up income apart from Bank Alfalah 1HCY26 profit.

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In terms of costs, operating costs increased by 8% to Rs60.64 billion, resulting in total costs excluding mark-ups reaching Rs61.69 billion for the six-month period. This increase in cost has not had any adverse effect on income growth, since income growth easily surpassed cost growth, and profit before provisions increased by 26% to Rs44.28 billion.

There was a 25% increase in the amount of taxes charged to the bank amounting to Rs23.72 billion due to better pre-tax profits in the six-month period. Another important factor which contributed to the Bank Alfalah 1HCY26 profit is the absence of any losses from discontinuing operations that had affected the bank with losses to the tune of Rs83.52 million in the corresponding period last year. As a result of all these factors, the bank was able to record its total net profit of Rs21.14 billion at the end of six months.