Bank Alfalah Bangladesh has demonstrated remarkable progress over the last five years, underscoring the bank's strategic agility and commitment to sustainable financial growth.
The performance highlights for the 2020-2024 period reveal substantial improvements across key financial indicators, reinforcing the bank's robust position in the country's banking landscape, says a statement.
Bank Alfalah Bangladesh's equity rose from BDT 5.9 billion in 2020 to BDT 6.5 billion in 2024, reflecting a steady increase of over 11% in five years. This solid growth indicates a strong capital foundation that allows the bank to support expansion, absorb potential risks, and meet regulatory capital requirements efficiently.
Deposits surged from BDT 16.4 billion in 2020 to BDT 23.8 billion in 2024, marking over 45% growth. This substantial increase is a testament to the bank's growing trust among customers and its ability to attract and retain savings amidst a competitive banking environment.
The bank's advances and investments rose from BDT 21.4 billion in 2020 to BDT 31.3 billion in 2024, registering over 46% growth. This highlights a strong focus on lending and investment activities, which contribute directly to economic development while diversifying the bank's income sources.
A significant share of the bank's lending portfolio is directed toward the country's leading corporate clients, which has played a key role in ensuring financial stability. These well-established clients have been instrumental in strengthening the bank's market position.
Despite a challenging economic climate in recent years, Bank Alfalah Bangladesh managed to reduce its Non-Performing Loans (NPL) ratio from 3.07% in 2020 to 1.98% in 2024, one of the lowest in the industry.
The bank is operating in an industry which has been hit hard by high NPL (currently around 20%).
However, Bank Alfalah though dealing with similar customer base and risk parameters was able to keep the NPL at a negligible level compared to its peers. It seems that good governance and good leadership on the ground can produce good results in a challenging industry that is played with high NPL.
The most notable achievement is the over 136% growth in profit before tax -- from BDT 0.47 billion in 2020 to BDT 1.12 billion in 2024. This surge reflects efficient cost management, increased revenue generation, and overall operational excellence.
The Return on Equity (ROE) increased by 6 percentage points over the five-year span, climbing from 4.77% in 2020 to a robust 10.47% in 2024. This improved ROE underscores the bank's enhanced profitability and effective capital utilisation.
As the banking sector in Bangladesh continues to evolve, Bank Alfalah's trajectory sets a strong precedent for sustainable operations, customer-centric innovation, and value creation for stakeholders.