Bank Alfalah Limited · PSX:BAFL
Bank Alfalah — Q1 2019 Earnings Presentation
16 slides from Bank Alfalah's earnings presentation, May 6, 2019
Slide 1: Analyst Briefing – 1Q 2019 Performance Review & Outlook
Analyst Briefing – 1Q 2019 Performance Review & Outlook 06th May 2019
Slide 2: Introductory Snapshot – Data as of March 31st 2019
Introductory Snapshot – Data as of March 31st 2019 Commencement of Operations 1997 Head Quarters Karachi Major Sponsors Dhabi Group Credit Rating (Long Term / Short Term) AA+ / A1+ Branches 649 (including 152 Islamic Branches) Cities Covered 225 cities in Pakistan, 7 cities overseas International Pr
Slide 3: Important Notes on Accounting Policies and Afghanistan Operations
Important Notes on Accounting Policies and Afghanistan Operations Afghanistan Operations During 2018, the Bank had signed a business transfer agreement with the potential buyer for sale of the Afghanistan operations. Accordingly, the aforesaid business was classified as ‘Asset held for sale’. Howeve
Slide 4: Profit & Loss Snapshot
Profit & Loss Snapshot Amount PKR mn 1Q18 4Q18* 1Q19 YoY QoQ NII increased 48% YoY; backed by a combination of Interest Income 14,269 16,768 20,757 45% 24% volumetric increase and NIM expansion. Interest Expenses 6,715 8,084 9,595 43% 19% Net Int Income 7,554 8,684 11,162 48% 29% Net provision c
Slide 5: Balance Sheet Snapshot
Balance Sheet Snapshot Amount PKR mn Mar-18 Dec-18* Mar-19 YoY QoQ Advances increased 13% YoY to PKR465bn but Cash 66,465 87,173 69,881 5% -20% were down QoQ due to Bal with banks 2,782 7,307 7,230 160% -1% high base and seasonal impact. Lending to FI 35,035 72,635 182,426 421% 151% YoY growth i
Slide 6: Key Ratios
Key Ratios 1Q18 2Q18 3Q18 4Q18* 1Q19 NIMs increased to 5.5% in 1Q19 aided by loan and Yield on Advances 7.3% 7.3% 7.8% 8.9% 11.5% investment repricing. Yield on Investments 6.6% 6.5% 6.7% 7.1% 7.8% Cost of deposit increase contained to 170bps YoY. Cost of Deposits 2.7% 2.6% 2.9% 3.6% 4.4% Post
Slide 7: 1Q 2019 Performance Review
1Q 2019 Performance Review
Slide 8: Advances & Asset Quality Trends
Advances & Asset Quality Trends NPLs mostly contained Specific Coverage remains at 87% 6% NPLs NPLs/gross advances 30 Provisions Coverage 120% 25 3.9% 100% 90.7% 20 5% 4.0% 3.5% 3.6% 23 89.0% 87.9% 86.7% 3.3% 84.5% 80% 16.2 15 18.8 18.7 15.5 15.1 15.9 3% 17.4 16.6 17.0 15 14.9 60% 10 2% 8 40% 5 0% -
Slide 9: Deposit Mix & Cost
Deposit Mix & Cost Deposit Growth Trend (PKR bn) CASA Continues to Remain Strong (PKR bn) 900 800 800 700 700 723 600 85% 77% 688 78% 600 637 635 653 79% 77% 603 500 541 560 534 500 74% 503 502 524 75% 400 400 446 396 300 300 200 200 2013 2014 2015 2016 2017 2018 1Q19 2013 2014 2015 2016 2017 2018 1
Slide 10: Appendix
Appendix
Slide 11: Balance Sheet Summary
Balance Sheet Summary 5yr Amounts in PKR mn 2013 2014 2015 2016 2017 2018 CAGR Cash & Bal. With Treasury Bank 61,205 50,516 62,369 74,071 70,381 82,408 6% Balances With Other Banks 34,764 12,332 16,552 9,373 3,754 3,875 -36% Lending to FIs 2,522 18,313 27,626 30,149 48,896 62,172 90% Advances (Net)
Slide 12: Profit & Loss Summary
Profit & Loss Summary 5yr Amounts in PKR mn 2013 2014 2015 2016 2017 2018 CAGR Interest Income 43,961 55,378 61,438 57,144 56,919 59,672 6% Interest Expense 27,066 33,505 32,811 28,153 27,354 27,746 0% Net Interest Income 16,895 21,873 28,627 28,991 29,565 31,926 14% Non - Interest Income 8,279 8,87
Slide 13: Key Ratios
Key Ratios 2013 2014 2015 2016 2017 2018 Capital Adequacy Ratio (Tier - I) 8.4% 9.6% 9.7% 9.9% 10.9% 12.2% Capital Adequacy Ratio Total 12.1% 12.8% 13.4% 13.2% 13.4% 15.0% Net Interest Margins 3.5% 3.8% 4.0% 3.6% 3.6% 4.0% Admin Cost to Income Ratio 68.8% 67.3% 60.3% 62.5% 64.8% 57.3% Non - Interest
Slide 14: 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) 1774.4 Market Capitalization (PKR bn) 78.1 Market Capitalization (USD mn)* 553.4 Average Daily Turnover (mn shares) 0.9 Average Daily Turnover (USD mn)* 0.3 Current Stock Price** 44.04
Slide 15: 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 16: Contact Information
Contact Information 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 16