Bank Alfalah Limited · PSX:BAFL

Bank Alfalah — Q1 2018 Earnings Presentation

15 slides from Bank Alfalah's earnings presentation, Apr 30, 2018

  1. Slide 1: Analyst Briefing – 1Q 2018 Performance Review & Outlook

    Analyst Briefing – 1Q 2018 Performance Review & Outlook 30th April 2018

  2. Slide 2: Introductory Snapshot – Data as of March 31st 2018

    Introductory Snapshot – Data as of March 31st 2018 Commencement of Operations 1997 Head Quarters Karachi Major Sponsors Dhabi Group Credit Rating (Long Term / Short Term) AA+ / A1+ Branches 641 (including 152 Islamic Branches) Cities Covered 225 cities in Pakistan, 7 cities overseas International Pr

  3. Slide 3: Profit & Loss Snapshot

    Profit & Loss Snapshot Amount PKR mn 1Q17* 4Q17* 1Q18 YoY QoQ  NII increased 2% YoY due to higher YoY average Interest Income 13,830 14,946 14,269 3% -5% volumes. Interest Expenses 6,405 7,292 6,715 5% -8%  Strong recoveries aided PKR201mn reversal in Net Int Income 7,425 7,654 7,554 2% -1% NPL pr

  4. Slide 4: Balance Sheet Snapshot

    Balance Sheet Snapshot Amount PKR mn Mar-17* Dec-17 Mar-18 YoY YTD  Advances increased 9% YoY to PKR413bn; Islamic Cash 63,407 70,381 66,465 5% -6% lending grew 26% YoY. Bal with banks 7,374 4,509 2,782 -62% -38%  Major growth in advances came from Consumer and Lending to FI 36,984 48,896 35,035 -

  5. Slide 5: Key Ratios

    Key Ratios 1Q17 2Q17 3Q17 4Q17 1Q18  NIMs grew 20bps QoQ, aided in part by reduced Yield on Advances 6.8% 7.0% 6.7% 7.5% 7.3% quantum of thin-margin Repo transactions. Yield on Investments 7.2% 7.0% 6.6% 6.5% 6.6%  ROA increased to 1.4% in Cost of Deposits 2.5% 2.2% 2.7% 2.8% 2.7% 1Q2018 with Tier

  6. Slide 6: 1Q 2018 Performance Review

    1Q 2018 Performance Review

  7. Slide 7: Advances & Asset Quality Trends

    Advances & Asset Quality Trends NPLs mostly contained Specific Coverage remained to 89% 6% NPLs NPLs/gross advances 30 Provisions Coverage 100.0% 89.8% 25 88.3% 89.3% 89.2% 89.0% 4.6% 4.2% 4.2% 4.2% 4.0% 5% 23 20 80.0% 16.2 15 18.3 17.9 16.0 15.6 15.7 15.5 3% 17.4 17.6 17.4 15 60.0% 10 2% 8 40.0% 5

  8. Slide 8: Deposit Mix & Cost

    Deposit Mix & Cost Deposit Growth Trend* (PKR bn) CASA Continues to Remain Strong* (PKR bn) 800 800 700 700 600 640 641 653 645 600 85% 606 79% 80% 83% 500 500 74% 547 526 523 535 75% 503 400 457 400 446 77% 396 300 300 350 200 200 2012 2013 2014 2015 2016 2017 1Q18 2012 2013 2014 2015 2016 2017 1Q1

  9. Slide 9: Appendix

    Appendix

  10. Slide 10: Balance Sheet Summary

    Balance Sheet Summary 5yr Amounts in PKR mn 2012 2013 2014 2015 2016 2017 CAGR Cash & Bal. With Treasury Bank 58,044 61,205 50,516 62,369 74,071 70,381 4% Balances With Other Banks 26,721 34,764 12,332 16,552 9,373 4,509 -30% Lending to Fis 877 2,522 18,313 27,626 30,149 48,896 123% Advances (Net) 2

  11. Slide 11: Profit & Loss Summary

    Profit & Loss Summary 5yr Amounts in PKR mn 2012 2013 2014 2015 2016 2017 CAGR Interest Income 46,080 43,961 55,378 61,438 57,245 56,919 4% Interest Expense 27,500 27,066 33,505 32,811 28,474 27,639 0% Net Interest Income 18,580 16,895 21,873 28,627 28,770 29,281 10% NPL Provisions 1,850 959 1,448 2

  12. Slide 12: Key Ratios

    Key Ratios 2012 2013 2014 2015 2016 2017* Capital Adequacy Ratio (Tier - I) 8.5% 8.4% 9.6% 9.6% 9.9% 11.2% Capital Adequacy Ratio Total 12.6% 12.1% 12.8% 13.3% 13.2% 13.7% Net Interest Margins 4.5% 3.5% 3.8% 4.0% 3.6% 3.5% Admin Cost to Income Ratio 60.0% 68.8% 67.3% 60.3% 62.5% 64.1% Non - Interest

  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 (PKR bn) 84.6 Market Capitalization (USD mn)* 732 Average Daily Turnover (mn shares) 1.5 Average Daily Turnover (USD mn)* 0.8 Current Stock Price** 52.65 12

  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 Capital Markets Bank Alfalah Limited Ph# +92 21 3241 6979 +92 21 3242 3617 Imtiaz.gadar@bankalfalah.com

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