Bank Alfalah Limited · PSX:BAFL
Bank Alfalah — Q3 2016 Earnings Presentation
15 slides from Bank Alfalah's earnings presentation, Nov 2, 2016
Slide 1: Analyst Briefing – 3Q 2016 Performance Review & Outlook
Analyst Briefing – 3Q 2016 Performance Review & Outlook 2nd November 2016
Slide 2: Basic Data & Market Positioning
Basic Data & Market Positioning Commencement of operations 1997 Head Quarters Karachi Major Sponsors Dhabi Group Credit Rating (Long Term/ Short Term) AA / A1+ Branches 655 (including 158 Islamic Branches) Cities Covered 225 cities in Pakistan, 7 cities overseas International Presence 11 Internation
Slide 3: Balance Sheet Snapshot
Balance Sheet Snapshot Amount PKR Mn Sep-15R Dec-15R Sep-16 YoY YTD Balance sheet size increased 10% YoY to Cash 43,020 62,369 63,640 48% 2% PKR870bn (down 4% YTD). Bal with banks 9,678 16,552 8,785 -9% -47% Repo borrowings reduced Lending to FI 32,854 27,626 26,332 -20% -5% by PKR37bn as ration
Slide 4: Profit & Loss Snapshot
Profit & Loss Snapshot Amount PKR Mn 3Q15 3Q16 YoY 9M15 9M16 YoY Net Interest Income grew by 2% in 9M2016 as Interest Income 14,973 13,735 -8% 46,217 43,448 -6% decline in yields was compensated by reduction Interest Expenses 7,640 6,702 -12% 24,976 21,761 -13% in cost of funds. Net Int Income 7,3
Slide 5: Key Ratios
Key Ratios 3Q15 4Q15 1Q16 2Q16 3Q16 NIMs declined 10bps in 3Q as yield on investment Yield on Advances 7.6% 7.3% 6.9% 7.1% 6.9% shrunk post PIB maturity. Yield on Investments 9.0% 8.7% 8.2% 8.0% 7.3% Deposits re-profiling Cost of Deposits 3.5% 3.4% 3.3% 3.1% 3.0% helped reduce cost of deposits b
Slide 6: 3Q16 Performance Review
3Q16 Performance Review
Slide 7: Advances & Asset Quality Trends
Advances & Asset Quality Trends NPLs mostly contained Specific Coverage improved to 83% NPLs NPLs/gross advances Provisions Coverage 10% 40 100.0% 25 80.0% 83.7% 80.6% 82.1% 83.1% 8% 30 20 75.0% 5.8% 5.7% 5.4% 15 6% 5.3% 5.3% 20 50.0% 14.8 15.5 15.7 15.7 15.6 18.5 18.5 19.4 19.1 18.7 10 4% 10 25.0%
Slide 8: Deposit Mix & Cost
Deposit Mix & Cost Deposit growth trend (PKR bn) CASA continues to remain strong (PKR bn) 700 600 79% 600 640 641 500 75% 606 69% 505 477 500 400 71% 526 72% 422 457 69% 374 400 300 328 401 64% 277 300 354 200 225 200 100 2010 2011 2012 2013 2014 2015 3Q16 2010 2011 2012 2013 2014 2015 3Q16 Deposit
Slide 9: Appendix
Appendix
Slide 10: Balance Sheet Summary
Balance Sheet Summary 5yr- Amount in PKR Mn 2010 2011 2012 2013 2014 2015 CAGR Cash & Bal. with treasury bank 41,198 50,883 58,044 61,205 55,378 62,369 9% Balances with other banks 16,179 17,424 26,721 35,180 12,332 16,552 0% Lending to FIs 6,498 7,765 877 2,522 18,313 27,626 34% Advances (net) 207,
Slide 11: Profit & Loss Summary
Profit & Loss Summary 5yr- Amount in PKR Mn 2010 2011 2012 2013 2014 2015 CAGR Interest income 37,530 44,298 46,080 43,961 55,378 61,458 10% Interest expense 23,855 25,687 27,500 27,066 33,505 32,811 7% Net interest income 13,675 18,611 18,580 16,895 21,873 28,648 16% NPL Provisions 2,269 1,870 1,85
Slide 12: Key Ratios
Key Ratios 2010 2011 2012 2013 2014 2015 Capital Adequacy Ratio (Tier-I) 7.1% 8.6% 8.5% 8.4% 9.6% 9.7% Capital Adequacy Ratio Total 10.5% 11.6% 12.6% 12.1% 12.8% 13.4% Net Interest Margins 4.1% 5.1% 4.4% 3.5% 3.9% 4.2% Admin Cost to Income Ratio 68.4% 57.7% 58.8% 68.7% 65.4% 58.6% Non Interest Incom
Slide 13: Snapshot of the Bank Stock Market Related Data
Snapshot of the Bank Stock Market Related Data Bloomberg Code BAFL PA Reuters Code BAFL.KA Shares Outstanding (mn) 1595.21 Market Capitalization (PRsbn) 49.4 Market Capitalization (US$mn)* 471 Average Daily Turnover (mn shares) 2.0 Average Daily Turnover (US$mn)* 0.40 Current Stock Price** 30.95 12M
Slide 14: Disclaimer
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 projections as
Slide 15: Contact Information
Contact Information For any queries: Imtiaz Gadar, CFA Head of Public Markets Bank Alfalah Limited Ph# +92 21 3241 6979 +92 21 3242 3617 Imtiaz.gadar@bankalfalah.com