Bank Alfalah Limited · PSX:BAFL
Bank Alfalah — Q1 2020 Earnings Presentation
17 slides from Bank Alfalah's earnings presentation, April 2020
Slide 1: Analyst Briefing: 2020 First Quarter Performance Review & Outlook
Bank Alfalah Limited Analyst Briefing 2020 – First Quarter Performance Review & Outlook April 2020
Slide 2: Introductory Snapshot
Bank Alfalah Limited Introductory Snapshot Commencement of Operations 1997 Head Quarters Karachi Major Sponsors Dhabi Group (50%); IFC (15%) Credit Rating (Long Term / Short Term) AA+ / A1+ Branches 698 (including 162 Islamic Branches) Cities Covered 225 cities in Pakistan, 7 cities overseas Interna
Slide 3: Financial Results – 1Q20
Financial Results – 1Q20
Slide 4: Profit & Loss Snapshot
Financial Results – 1Q20 Profit & Loss Snapshot Amount PKR mn 1Q19 4Q19 1Q20 YoY QoQ Net interest income posted 6% YoY growth. Interest Income 20,757 26,046 25,906 25% -1% Adjusted for one-offs in Interest Expenses 9,595 14,500 14,125 47% -3% 1Q19 (mark up reversals), growth was 10% YoY. Net Int.
Slide 5: Balance Sheet Snapshot
Financial Results – 1Q20 Balance Sheet Snapshot Amount PKR mn Mar-19 Dec-19 Mar-20 YoY QoQ Loan book reported Cash 69,881 100,732 78,802 13% -22% growth of 8% YoY, while it was marginally down Bal with banks 7,230 4,710 8,524 18% 81% QoQ. Lending to FI 182,426 71,435 50,404 -72% -29% Decrease in
Slide 6: Key Ratios
Financial Results – 1Q20 Key Ratios 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 YoY decline in NIMs due to one off mark up reversals Yield on Advances 8.9% 11.1% 10.9% 12.6% 12.7% 12.5% inflating 1Q19 NIMs. 1Q20 numbers also impacted by Yield on Investments 7.1% 7.8% 8.8% 10.6% 10.6% 10.6% higher REPO volumes.
Slide 7: Digital Banking
Digital Banking Timely investment positioning BAFL favorably The investment made in Digital are bearing fruits 36 active CDMs | Scale to 300 units in KLI in 2020. Moving OTC transactions as the digital capability is well thought ahead of First bank to offer Customized Android based Bank Agnostic
Slide 8: Appendix
Appendix
Slide 9: Quarterly Deposit Mix
Appendix Quarterly Deposit Mix Deposit Growth Trend* (PKR bn) CASA Continues to Remain Strong* (PKR bn) 900 700 782 755 594 599 800 723 600 563 700 637 635 653 503 541 502 603 600 500 446 524 500 396 400 400 300 300 200 200 2013 2014 2015 2016 2017 2018 2019 1Q20 2013 2014 2015 2016 2017 2018 2019 1
Slide 10: Quarterly Advances & Asset quality trends
Appendix Quarterly Advances & Asset quality trends 1Q20 NPL accretion - classification of one govt backed name OAEM & Govt NPLs - requiring no provision kept coverage ~80% NPLs NPLs/gross advances Provisions Coverage 5.0% 22.4 23.5 25 100.0% 79.3% 20.7 89.2% 79.1% 18 4.0% 18.7 17.9 4.5% 20 86.7% 4.2
Slide 11: Balance Sheet
Appendix Balance Sheet Amounts in PKR mn 2014 2015 2016 2017 2018 2019 5yr CAGR Cash & Bal. With Treasury Bank 50,516 62,369 74,071 70,381 82,408 100,732 15% Balances With Other Banks 12,332 16,552 9,373 3,754 3,875 4,710 -18% Lending to FIs 18,313 27,626 30,149 48,896 62,172 71,435 31% Advances (Ne
Slide 12: Profit & Loss
Appendix Profit & Loss Amounts in PKR mn 2014 2015 2016 2017 2018 2019 5yr CAGR Interest Income 55,378 61,439 57,144 56,920 59,672 92,481 11% Interest Expense 33,505 32,811 28,153 27,354 27,746 47,623 7% Net Interest Income 21,873 28,628 28,991 29,566 31,926 44,857 15% NPL & Other Provisions 1,928 2
Slide 13: Key Ratios
Appendix Key Ratios 2014 2015 2016 2017 2018 2019 Capital Adequacy Ratio (Tier - I) 9.6% 9.7% 9.9% 10.9% 12.2% 13.3% Capital Adequacy Ratio Total 12.8% 13.4% 13.2% 13.4% 15.0% 16.9% Net Interest Margins 3.8% 4.0% 3.6% 3.6% 4.0% 5.3% Admin Cost to Income Ratio 67.3% 60.3% 62.5% 64.8% 57.3% 52.6% Non
Slide 14: Stock Market Related Data
Appendix Stock Market Related Data Bloomberg Code BAFL PA Reuters Code BAFL.KA Shares Outstanding (mn) 1,777.1 Market Capitalization (PKR bn) 53,048 Market Capitalization (USD mn)* 332.3 Average Daily Turnover (mn shares) 1.3 Average Daily Turnover (USD mn)* 0.3 Current Stock Price** (PKR) 29.85 Adj
Slide 15: Awards & Accolades
Appendix Awards & Accolades Best Debit & Best Innovative Card Diversity & Inclusion Best Website Bank Alfalah Best Loyalty Best Investor Best Corporate Credit Cards 2017 Award 2017 of the Year Islamic PAS Award & Rewards Relations Reports of 2018 2017 2017 2017 Program PSX Listed Companies Awards Fo
Slide 16: Disclaimer
Appendix 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, estimates and proje
Slide 17: Contact Details
Appendix Contact Details For any queries: Imtiaz Gadar, CFA Head of Capital Markets Division Bank Alfalah Limited Phone: +92 21 3242 3617 E-mail: imtiaz.gadar@bankalfalah.com 17