Bank Alfalah Limited · PSX:BAFL
Bank Alfalah — Q2 2016 Earnings Presentation
15 slides from Bank Alfalah's earnings presentation, Aug 26, 2016
Slide 1: Analyst Briefing – 2Q 2016 Performance Review & Outlook
Analyst Briefing – 2Q 2016 Performance Review & Outlook 26th August 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 653 (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 Jun-15R Dec-15R Jun-16 YoY YTD Balance sheet footing increased 13% YoY to PKR Cash 52,408 62,369 51,823 -1% -17% 890bn (flat YTD). Bal with banks 12,349 16,552 14,017 14% -15% Investments increased by 24% YoY and flat YTD. Lending to FI 32,052 27,626 16,522 -
Slide 4: Profit & Loss Snapshot
Profit & Loss Snapshot Amount PKR Mn 2Q15 2Q16 YoY 1H15 1H16 YoY Net Interest Income grew 5% YoY in 1H2016 as the Interest Income 15,344 14,762 -4% 31,243 29,713 -5% drop in yield on assets was more than offset by Interest Expenses 8,238 7,209 -12% 17,336 15,059 -13% reduction in cost of funds. Ne
Slide 5: Key Ratios
Key Ratios 2Q15 3Q15 4Q15 1Q16 2Q16 Divergent YoY and QoQ trends in 2Q16 NIMs, as Yield on Advances 8.6% 7.6% 7.3% 6.9% 7.1% monetary easing led to 40bp YoY decline in NIMs, Yield on Investments 9.4% 9.0% 8.7% 8.2% 8.0% while higher advances Cost of Deposits 4.1% 3.5% 3.4% 3.3% 3.1% yield and lowe
Slide 6: 2Q16 Performance Review
2Q16 Performance Review
Slide 7: Advances & Asset Quality Trends
Advances & Asset Quality Trends NPLs mostly contained Specific Coverage improved to 82% NPLs NPLs/gross advances Provisions Coverage 10% 40 100.0% 25 77.6% 80.0% 83.7% 80.6% 82.1% 8% 30 20 75.0% 5.9% 5.8% 5.7% 5.3% 15 6% 5.3% 20 50.0% 14.7 14.8 15.5 15.7 15.7 18.9 18.5 18.5 19.4 19.1 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 Thousands 79% 600 640 640 500 75% 606 69% 506 477 500 400 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 2Q16 2010 2011 2012 2013 2014 2015 2Q1
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) 46.3 Market Capitalization (US$mn)* 442 Average Daily Turnover (mn shares) 1.3 Average Daily Turnover (US$mn)* 0.36 Current Stock Price** 29.05 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