Bank Alfalah Limited · PSX:BAFL
Bank Alfalah — Q2 2021 Earnings Presentation
19 slides from Bank Alfalah's earnings presentation, August 2021
Slide 1: Analyst Briefing: 2021 Second Quarter Performance Review & Outlook
Bank Alfalah Limited Analyst Briefing 2021 – Second Quarter Performance Review & Outlook August 2021
Slide 2: Overview and Financial Snapshot
Bank Alfalah Limited Overview and Financial Snapshot Major Sponsors Credit Rating Domestic Coverage Global Presence Sponsors include Dhabi Group Rated AA+ (Long Term) and A1+ Presence in over 225 cities across 11 International Branches in 4 (50%); IFC (15%) (Short Term) Pakistan countries Our Custom
Slide 3: Financial Results – 1H21
Financial Results – 1H21
Slide 4: Key Highlights
Bank Alfalah Limited Key Highlights Deposits up by 27% YoY; Cross PKR 1 trillion Profit after Tax grows by 25% YoY Crossed PKR1 trillion deposit mark, without PAT is up 25% YoY (flat sequentially) driven by compromising the current account mix strong revenue performance NII up 13% QoQ; non interest
Slide 5: Balance Sheet Snapshot
Financial Results – 1H21 Balance Sheet Snapshot Amount PKR mn Jun-20 Dec-20 Mar-21 Jun-21 YoY QoQ BAFL crossed the PKR1 trillion mark for deposits Cash 94,048 99,348 88,556 97,485 4% 10% with 27% YoY growth. Bal with banks 8,225 6,234 12,445 19,778 140% 59% The growth was achieved Lending to FI
Slide 6: Profit & Loss Snapshot
Financial Results – 1H21 Profit & Loss Snapshot Amount PKR mn 1H20 1H21 YoY 2Q20 1Q21 2Q21 YoY QoQ Robust sequential growth of 13% witnessed in NII Interest Income 49,948 45,913 -8% 24,043 21,388 24,525 2% 15% during 2Q21 – driven by a combination of volumes Interest Expenses 26,587 23,929 -10% 12
Slide 7: Key Ratios
Financial Results – 1H21 Key Ratios 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Slight QoQ uptick in NIM due to better yields on the asset Yield on Advances 12.5% 9.7% 8.2% 7.2% 7.2% 7.5% book. Receipt of suspended markup of ~PKR 150mn Yield on Investments 10.6% 9.6% 8.2% 7.5% 7.3% 7.5% supported yield on advan
Slide 8: Digital Banking & GoP Initiatives
Digital Banking & GoP Initiatives
Slide 9: Digital Banking Transformation
Bank Alfalah Limited Digital Banking Transformation DIGITAL / BRANCH RATIO FOR RELEVANT PRODUCTS DIGITAL VERTICALS THROUGHPUT (PKR bn) 583 Channels 316 285 (ALFA, IB, 57% Jun’20 to Jun’21 64% ATM, CDM) Jun -19 Jun -20 Jun -21 Payments COUNTER TO CDM MIGRATION AT RELEVANT SITES (ALFA Mall, DEPOSITS (
Slide 10: Key Player in supporting GoP and SBP initiatives
Bank Alfalah Limited Key Player in supporting GoP and SBP initiatives 01 01 02 G2P Temporary BAFL remains one of the preferred Economic Among Top 3 participants with PKR50bn+ of partners in this space, being an active initiatives SBP’s TERF Facility provided to more than 100 Refinance (TERF) partici
Slide 11: Appendix
Appendix
Slide 12: Quarterly Advances & Asset quality trends
Appendix Quarterly Advances & Asset quality trends Marginal decline in NPLs lowers infection ratio to 3.9% Coverage stands at 99% - no coverage on GoP backed NPLs NPLs NPLs/gross advances 5.0% 4.7% 4.8% 30 100% 4.3% 4.2% 3.9% 98% 99% 25 90% 92% 94% 4.0% 91% 20 80% 25.1 25.2 25.9 25.4 25.1 3.0% 15 70
Slide 13: Deposit Mix
Appendix Deposit Mix Deposit Growth Trend* (PKR bn) CASA Continues to Remain Strong* (PKR bn) 1100 1,026 805 800 882 687 900 700 782 594 723 600 541 563 700 637 635 653 503 502 500 400 500 300 300 200 2015 2016 2017 2018 2019 2020 2Q21 2015 2016 2017 2018 2019 2020 2Q21 Deposit Mix Deposits Composit
Slide 14: Balance Sheet
Appendix Balance Sheet Amounts in PKR mn 2015 2016 2017 2018 2019 2020 5yr CAGR Cash & Bal. With Treasury Bank 62,369 74,071 70,381 82,408 100,732 99,348 10% Balances With Other Banks 16,552 9,373 3,754 3,875 4,710 6,234 -18% Lending to FIs 27,626 30,149 48,896 62,172 71,435 77,306 23% Advances (Net
Slide 15: Profit & Loss
Appendix Profit & Loss Amounts in PKR mn 2015 2016 2017 2018 2019 2020 5yr CAGR Interest Income 61,438 57,144 56,919 59,672 92,519 92,616 9% Interest Expenses 32,811 28,153 27,354 27,746 47,623 47,911 8% Net Int. Income 28,627 28,991 29,565 31,926 44,896 44,705 9% Non Int. Income 8,862 8,907 9,381 1
Slide 16: Key Ratios
Appendix Key Ratios 2015 2016 2017 2018 2019 2020 Capital Adequacy Ratio (Tier - I) 9.7% 9.9% 10.9% 12.2% 13.3% 12.7% Capital Adequacy Ratio Total 13.4% 13.2% 13.4% 15.0% 16.9% 16.5% Net Interest Margins 4.0% 3.6% 3.6% 4.0% 5.3% 4.3% Admin Cost to Income Ratio 60.3% 62.5% 64.8% 57.3% 52.6% 54.7% Non
Slide 17: Stock Market Related Data
Appendix Stock Market Related Data Bloomberg Code BAFL PA Reuters Code BAFL.KA Shares Outstanding (mn) 1,777.1 Market Capitalization (PKR bn) 57,489 Market Capitalization (USD mn)* 346 Average Daily Turnover (mn shares) 1.9 Average Daily Turnover (USD mn)* 0.5 Current Stock Price** (PKR) 32.35 12M H
Slide 18: Disclaimer
Appendix 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 proje
Slide 19: Contact Details
Appendix Contact Details 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 19