KARACHI - Bank Alfalah Limited (BAFL) is expected to post profit after tax (PAT) of Rs2.36 billion, translating into an EPS of Rs2.95 compared to PAT of Rs3.13 billion of last year, while depicting a considerable decline of 24.56 percent. It is important to mention here that BAFL is scheduled to hold its board meeting on March 25, 2009 (today) to unveil Bank's financial results for the year 2008. The decline in the bottom line of the bank is mainly anticipated due to non interest income as it is expected to decline by 6.96 percent in CY08 over the last year. The reason for this expected decrease in non interest income is the Rs2.05 billion gain booked on sale of securities in CY07 which inflated the earnings at that time. The other factors which are likely to slowdown the earnings of the Bank are, rising interest and operating expenses which are estimated to rise by 17.81 percent to Rs19.58 billion and 21.98 percent to Rs10.11 billion respectively in CY08. On the other hand, provisioning is expected to slash heavily by 41.90 percent to Rs1.38 billion in CY08 against Rs2.38 billion in CY07. According to a research data compiled by Atlas Capital, the total income of the bank is likely to increase by 9.06 percent to Rs34.71billion in CY08 as compared to Rs31.82 billion in CY07. Interest income of the bank is expected to increase by 12.82 percent in CY08 which would result in the total income going in upward direction against projected decrease in the non interest income mentioned above. The expected increase in interest income would be mainly due to expected increase in advances and other earning assets. Report further said the gross spread of the bank seems to decline by 2.85 bps to 32.68 percent in CY08 from 35.54 percent in CY07 due to higher expected growth in interest expenses than interest income. Similarly, Net Interest Margin (NIM) of the bank is also expected to decline by 101bps to 2.92pc in CY08 in contrast to 3.93pc at the end of CY07. Report anticipates the average yield on earning assets to decline by 11bps to 8.93 percent in CY08 versus 9.04 percent at the end of CY07 mainly on account of expected increase in the earning assets. In addition, anticipated average yield on interest bearing liabilities is likely to stand at 5.70 percent for CY08 from 5.34 percent in CY07 on account of increase in cost of deposits. As a result, net spread of the bank is expected to stand at 3.23pc in CY08 versus 3.70pc in CY07, representing a decline of 47bps. According to report projection, advances to deposit ratio is likely to remain the same at 62.70pc at end of CY08 versus 62.67pc in CY07.