Bank Alfalah Limited · PSX:BAFL

Bank Alfalah — Q2 2017 Earnings Presentation

15 slides from Bank Alfalah's earnings presentation, Aug 29, 2017

  1. Slide 1: Analyst Briefing – 2Q 2017 Performance Review & Outlook

    Analyst Briefing – 2Q 2017 Performance Review & Outlook 29th August 2017

  2. Slide 2: Introductory Snapshot

    Introductory Snapshot Commencement of Operations 1997 Head Quarters Karachi Major Sponsors Dhabi Group Credit Rating (Long Term / Short Term) AA+ / A1+ Branches 633 (including 151 Islamic Branches) Cities Covered 225 cities in Pakistan, 7 cities overseas International Presence 11 International Branc

  3. Slide 3: Balance Sheet Snapshot

    Balance Sheet Snapshot Amount PKR Mn Jun-16 Dec-16 Jun-17 YoY YTD  Balance sheet size increased by 8% YoY and Cash 51,823 74,071 81,711 58% 10% 4% YTD to PKR958bn. Bal with banks 14,017 9,373 12,321 -12% 31%  YoY advances growth clocked at 19% to Lending to FI 16,522 30,149 40,920 148% 36% PKR410b

  4. Slide 4: Profit & Loss Snapshot

    Profit & Loss Snapshot Amount PKR Mn 2Q16 1Q17 2Q17 YoY QoQ  Net Interest Income remained flat YoY, despite Interest Income 14,762 13,862 14,187 -4% 2% maturity of PIBs, while NII increased 4% QoQ. Interest Expenses 7,209 6,600 6,629 -8% 0%  Net NPL reversals were Net Int Income 7,553 7,262 7,558

  5. Slide 5: Key Ratios

    Key Ratios 2Q16 3Q16 4Q16 1Q17 2Q17  NIMs marginally down QoQ due to decline in Yield on Advances 7.1% 6.9% 6.8% 6.8% 7.0% investment yields. Yield on Investments 8.5% 7.6% 7.4% 7.2% 7.0%  ROA dropped 30bps QoQ in 2Q17 to 0.9%, Cost of Deposits 3.1% 3.0% 2.9% 2.5% 2.5% primarily due to super tax,

  6. Slide 6: 2Q 2017 Performance Review

    2Q 2017 Performance Review

  7. Slide 7: Advances & Asset Quality Trends

    Advances & Asset Quality Trends NPLs mostly contained Specific Coverage improved to 89% NPLs NPLs/gross advances Provisions Coverage 40 100.0% 25 88.3% 89.3% 9% 86.1% 82.1% 83.1% 20 30 80.0% 7% 5.4% 16.4 16.2 15 5.3% 15.7 15.6 16.0 4.8% 4.7% 4.2% 20 60.0% 5% 19.1 18.7 19.0 18.3 10 17.9 10 40.0% 3% 5

  8. Slide 8: Deposit Mix & Cost

    Deposit Mix & Cost Deposit Growth Trend (PKRbn) CASA Continues to Remain Strong (PKRbn) 700 600 Thousands 83% 83% 600 640 641 657 500 75% 544 534 606 69% 477 500 400 70% 526 419 70% 366 400 457 300 328 300 200 200 100 2012 2013 2014 2015 2016 2Q17 2012 2013 2014 2015 2016 2Q17 Deposit Mix (June 2017

  9. Slide 9: Appendix

    Appendix

  10. Slide 10: Balance Sheet Summary

    Balance Sheet Summary 5yr- Amounts in PKR mn 2011 2012 2013 2014 2015 2016 CAGR Cash & Bal. with Treasury Bank 50,883 58,044 61,205 50,516 62,369 74,071 8% Balances with Other Banks 17,424 26,721 34,764 12,332 16,552 9,373 -12% Lending to FIs 7,765 877 2,522 18,313 27,626 30,149 31% Advances (Net) 1

  11. Slide 11: Profit & Loss Summary

    Profit & Loss Summary 5yr- Amounts in PKR mn 2011 2012 2013 2014 2015 2016 CAGR Interest Income 44,298 46,080 43,961 55,378 61,438 57,245 5% Interest Expense 25,687 27,500 27,066 33,505 32,811 28,474 2% Net Interest Income 18,611 18,580 16,895 21,873 28,627 28,770 9% NPL Provisions 1,865 1,850 959 1

  12. Slide 12: Key Ratios

    Key Ratios 2011 2012 2013 2014 2015 2016 Capital Adequacy Ratio (Tier-I) 8.6% 8.5% 8.4% 9.6% 9.6% 9.9% Capital Adequacy Ratio Total 11.6% 12.6% 12.1% 12.8% 13.3% 13.2% Net Interest Margins 5.1% 4.4% 3.5% 3.9% 4.2% 3.7% Admin Cost to Income Ratio 57.7% 58.8% 68.7% 65.4% 58.6% 62.2% Non Interest Incom

  13. 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) 1607.6 Market Capitalization (PRsbn) 64.4 Market Capitalization (US$mn)* 610 Average Daily Turnover (mn shares) 1.9 Average Daily Turnover (US$mn)* 0.8 Current Stock Price** 40.05 12M H

  14. 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

  15. 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

Bank Alfalah — Q2 2017 Earnings Presentation on 6ix