Bank Alfalah Limited · PSX:BAFL
Bank Alfalah — H1 2023 Earnings Presentation
16 slides from Bank Alfalah's earnings presentation, August 2023
Slide 1: Analyst Briefing 1H 2023 – Performance Review & Outlook
Bank Alfalah Limited Analyst Briefing 1H 2023 – Performance Review & Outlook August 2023
Slide 2: Overview
Bank Alfalah Limited Overview Major Sponsor Credit Rating Domestic Coverage Global Presence Dhabi Group (56.1%) Rated AA+ (Long Term) and Presence in over 225 cities 10 International Branches and 1 A1+ (Short Term) across Pakistan offshore banking unit in 4 countries Our Customers Profits Market Sha
Slide 3: Financial Results — 1H 2023
A Bank alfalah Financial Results — 1H 2023
Slide 4: Balance Sheet Snapshot
Financial Results – 1H 2023 Balance Sheet Snapshot Amount PKR mn Jun-22 Dec-22 Mar-23 Jun-23 YoY QoQ Cash & Bal with Treasury Bank 131,807 140,613 153,729 197,029 49% 28% ▪ Deposits up 35% YoY – Bal with banks 12,610 9,485 18,400 16,188 28% -12% resulting in improved market share, amid branch networ
Slide 5: Profit & Loss Snapshot
Financial Results – 1H 2023 Profit & Loss Snapshot Amount PKR mn 1H 2022 1H 2023 YoY 2Q 2022 1Q 2023 2Q 2023 YoY QoQ ▪ NII grows 84% YoY; growth in balance sheet size and Interest Income 82,425 176,456 114% 46,608 75,589 100,868 116% 33% improved spreads after re- pricing of the well positioned Inte
Slide 6: Key Ratios
Financial Results – 1H 2023 Key Ratios 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 ▪ Improved NIMs owing to interest rate hikes supported Yield on Advances 8.6% 10.1% 11.9% 12.4% 14.2% 16.2% by volumetric growth. Yield on Investments 9.7% 11.7% 13.7% 14.6% 15.9% 18.6% ▪ Cost to income falls to 41.9% on stro
Slide 7: Trends Analysis
A Bank alfalah Trends Analysis
Slide 8: Financial Snapshot: Deposits and CASA
Trends Analysis Financial Snapshot Deposits (PKR bn) – Domestic Market Share at 6.4% CASA Deposits (PKR bn) – CASA Ratio at 71.3% 2,000 Total Deposits Domestic Market Share 7.0% 1,300 CASA CASA Ratio 1,267 100.0% 6.4% Thousands Thousands 6.0% 6.0% 1,200 1,800 5.6% 6.0% 90.0% 5.3% 1,776 1,100 1,066 1
Slide 9: Quarterly Advances & Asset Quality Trends
Trends Analysis Quarterly Advances & Asset quality trends Infection Ratio at 4.7% Coverage remains above 100% 5.0% NPLs (PKR Bn) NPLs/gross advances 4.7% 40 110% 4.5% 4.1% 4.0% 37.8 105% 35 4.0% 3.5% 32.8 31.5 30 100% 110% 31.0 108% 3.0% 104% 103% 102% 26.3 25 95% 2.0% 20 90% 2Q22 3Q22 4Q22 1Q23 2Q2
Slide 10: Balance Sheet
Trends Analysis Balance Sheet Amounts in PKR mn 2017 2018 2019 2020 2021 2022 5yr CAGR Cash & Bal. With Treasury Bank 70,381 82,408 100,732 99,348 105,606 140,613 14.8% Balances With Other Banks 3,754 3,875 4,710 6,234 9,783 9,485 20.4% Lending to FIs 48,896 62,172 71,435 77,306 35,982 115,354 18.7%
Slide 11: Profit & Loss
Trends Analysis Profit & Loss Amounts in PKR mn 2017 2018 2019 2020 2021 2022 5yr CAGR Interest Income 56,920 59,672 92,519 92,616 100,402 213,897 30.3% Interest Expenses 27,354 27,746 47,623 47,911 54,134 136,558 37.9% Net Int. Income 29,565 31,926 44,896 44,705 46,268 77,340 21.2% Non Int. Income
Slide 12: Key Ratios
Trends Analysis Key Ratios 2017 2018 2019 2020 2021 2022 Capital Adequacy Ratio (Tier - I) 10.9% 12.2% 13.3% 12.7% 11.1% 11.1% Capital Adequacy Ratio Total 13.4% 15.0% 16.9% 16.5% 14.4% 13.8% Net Interest Margins 3.6% 4.0% 5.3% 4.3% 3.4% 4.2% Admin Cost to Income Ratio 64.8% 57.3% 52.6% 54.7% 58.1%
Slide 13: Awards
Awards Awards Best Customer Franchise PSX Top 25 Listed Best Investor Relations, Pakistan Digital Awards 2022 Award 2021 Companies Award 2021 • Best High Impact Campaign Award for Savings Account Campaign PSX Listed Companies • Best Digital Campaign Award for Home Remittance Campaign by Pakistan Ban
Slide 14: Stock Market Related Data
Bank Alfalah Limited Stock Market Related Data Bloomberg Code BAFL PA Reuters Code BAFL.KA Shares Outstanding (mn) 1,577.17 Market Capitalization (PKR bn)** 67,455 Market Capitalization (USD mn)* 229 Average Daily Turnover (mn shares) - 12M 2.61 Average Daily Turnover (USD mn) - 12M 338.59 Current S
Slide 15: Contact Details
Bank Alfalah Limited Contact Details For any queries: Syed Akbar Ali, CFA, FRM Head of Capital Markets & Investor Relations Bank Alfalah Limited Phone: +92 (21) 3242 3617 E-mail: syed.akbar@bankalfalah.com 15
Slide 16: Disclaimer
Bank Alfalah Limited Disclaimer This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimat