PACRA Assigns Preliminary Instrument Rating to Bank Alfalah Limited - Additional Tier 1 TFC - PKR 10 billion (Inclusive of PKR 3 billion Green Shoe Option) - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- September 29, 2022 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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Bank Alfalah is an active player in the lending market. Its presence around different segments of advances book is also meaningful. The ratings reflect the bank's improved performance, good asset quality, strong financial profile and healthy liquidity. Asset quality improved as NPLs remained intact and overall infection ratio declined. In line with the Bank's overall growth strategy, as on Jun'22, the gross advances of the Bank have increased by 8.1% since Dec'21, contributing to increase in Risk Weighted Assets; along with regular dividend payouts, thereby CAR stood at 14.64% as of Jun'22 (CY21: 14.43%), well above the Regulatory threshold. The bank's advances have improved to a notable level, resulting in a distinguished ADR (Net Advances to Deposits) of 55.1% as on Jun'22.

Policy rates have peaked in 2022 increasing the Bank's cost of funds as well. PAT of the Bank increased by 25.5% and stood at PKR 8.7bln...