Bank Alfalah Limited · PSX:BAFL
Bank Alfalah — Q3 2020 Earnings Presentation
16 slides from Bank Alfalah's earnings presentation, November 2020
Slide 1: Corporate Briefing: 3Q 2020 Performance Review & Outlook
Bank Alfalah Limited Corporate Briefing 3Q 2020 Performance Review & Outlook November 2020
Slide 2: Introductory Snapshot
Bank Alfalah Limited Introductory Snapshot Commencement of Operations 1997 Head Quarters Karachi Major Sponsors Dhabi Group (50%); IFC (15%) Credit Rating (Long Term / Short Term) AA+ / A1+ Branches 710 (including 170 Islamic Branches) ATMs/ CDMs 801/137 Cities Covered 225 cities in Pakistan, 7 citi
Slide 3: Financial Results – 3Q20
Financial Results – 3Q20
Slide 4: Profit & Loss Snapshot
Financial Results – 3Q20 Profit & Loss Snapshot Amount PKR mn 9M19 9M20 YoY 3Q19 2Q20 3Q20 YoY QoQ QoQ decline of 4% in NII for 3Q20 due to downward re- Interest Income 66,465 71,736 8% 24,806 24,043 21,787 -12% -9% pricing of assets. Interest Expenses 33,123 37,269 13% 13,146 12,462 10,681 -19% -
Slide 5: Balance Sheet Snapshot
Financial Results – 3Q20 Balance Sheet Snapshot Amount PKR mn Sep-19 Dec-19 Sep-20 YoY YTD Cash decreased 21% YTD, primarily on the basis of Cash 74,457 100,732 79,502 7% -21% seasonal and one-off increase in Dec-19. Bal with banks 5,284 4,710 3,192 -40% -32% Lending to FI 76,269 71,435 53,161 -30
Slide 6: Key Ratios
Financial Results – 3Q20 Key Ratios 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 NIM for 3Q20 reflected compression from re- Yield on Advances 10.9% 12.6% 12.7% 12.5% 9.7% 8.2% pricing of assets following the 625bp easing in 2020. Yield on Investments 8.8% 10.6% 10.6% 10.6% 9.6% 8.2% Cost of Deposits 4.6% 5.1% 5
Slide 7: Appendix
Appendix
Slide 8: Quarterly Deposit Mix
Appendix Quarterly Deposit Mix Deposit Growth Trend* (PKR bn) CASA Continues to Remain Strong* (PKR bn) 700 800 820 700 782 600 666 723 594 600 637 635 653 500 541 563 603 503 502 500 524 400 446 400 396 300 300 200 200 2013 2014 2015 2016 2017 2018 2019 3Q20 2013 2014 2015 2016 2017 2018 2019 3Q20
Slide 9: Quarterly Advances & Asset Quality Trends
Appendix Quarterly Advances & Asset quality trends NPL ratio inched up on contraction of loan book, amid flat NPLs Specific coverage at 80% (GoP NPL factor); Total coverage at 98% NPLs NPLs/gross advances Specific Coverage Total Coverage 4.8% 5.0% 4.5% 4.7% 30 100% 4.2% 4.2% 98% 25 90% 92% 4.0% 20 8
Slide 10: Balance Sheet
Appendix Balance Sheet Amounts in PKR mn 2014 2015 2016 2017 2018 2019 5yr CAGR Cash & Bal. With Treasury Bank 50,516 62,369 74,071 70,381 82,408 100,732 15% Balances With Other Banks 12,332 16,552 9,373 3,754 3,875 4,710 -18% Lending to FIs 18,313 27,626 30,149 48,896 62,172 71,435 31% Advances (Ne
Slide 11: Profit & Loss
Appendix Profit & Loss Amounts in PKR mn 2014 2015 2016 2017 2018 2019 5yr CAGR Interest Income 55,378 61,439 57,144 56,920 59,672 92,481 11% Interest Expense 33,505 32,811 28,153 27,354 27,746 47,623 7% Net Interest Income 21,873 28,628 28,991 29,566 31,926 44,857 15% NPL & Other Provisions 1,928 2
Slide 12: Key Ratios
Appendix Key Ratios 2014 2015 2016 2017 2018 2019 Capital Adequacy Ratio (Tier - I) 9.6% 9.7% 9.9% 10.9% 12.2% 13.3% Capital Adequacy Ratio Total 12.8% 13.4% 13.2% 13.4% 15.0% 16.9% Net Interest Margins 3.8% 4.0% 3.6% 3.6% 4.0% 5.3% Admin Cost to Income Ratio 67.3% 60.3% 62.5% 64.8% 57.3% 52.6% Non
Slide 13: 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) 58,770 Market Capitalization (USD mn)* 354.7 Average Daily Turnover (mn shares) 1.7 Average Daily Turnover (USD mn)* 0.6 Current Stock Price** (PKR) 33.07 12M
Slide 14: Awards & Accolades
Appendix Awards & Accolades Best Debit & Best Innovative Card Diversity & Inclusion Best Website Bank Alfalah Best Loyalty Best Investor Best Corporate Credit Cards 2017 Award 2017 of the Year Islamic PAS Award & Rewards Relations Reports of 2018 2017 2017 2017 Program PSX Listed Companies Awards Fo
Slide 15: 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 16: 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 16