Bank Alfalah Limited · PSX:BAFL
Bank Alfalah — FY2020 Earnings Presentation
16 slides from Bank Alfalah's earnings presentation, February 2021
Slide 1: Analyst Briefing: 2020 Annual Performance Review & Outlook
Bank Alfalah Limited Analyst Briefing 2020 - Annual Performance Review & Outlook February 2021
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 730 (including 186 Islamic Branches) ATMs/ CDMs 818/223 Cities Covered 225 cities in Pakistan, 7 citi
Slide 3: Financial Results – 2020
Financial Results – 2020
Slide 4: Profit & Loss Snapshot
Financial Results – 2020 Profit & Loss Snapshot Amount PKR mn 4Q19 3Q20 4Q20 YoY QoQ 2019 2020 YoY Following on from 41% YoY increase in 2019, NII Interest Income 26,016 21,787 20,880 -20% -4% 92,519 92,616 0% remained flat YoY in 2020. Interest Expenses 14,500 10,681 10,643 -27% 0% 47,623 47,911
Slide 5: Balance Sheet Snapshot
Financial Results – 2020 Balance Sheet Snapshot Amount PKR mn Dec-19 Sep-20 Dec-20 YoY QoQ Cash Balance remained flat YoY but up 25% QoQ Cash 100,732 79,502 99,348 -1% 25% primarily due to seasonal year end impact. Bal with banks 4,710 3,192 6,234 32% 95% Lending to FI 71,435 53,161 77,306 8% 45%
Slide 6: Key Ratios
Financial Results – 2020 Key Ratios 2019 1Q20 2Q20 3Q20 4Q20 2020 NIMs decreased to 3.6% in 4Q20, due to 1) OMO trades; Yield on Advances 11.8% 12.5% 9.7% 8.2% 7.2% 9.4% 2) lower yield on refinance schemes and 3) remaining Yield on Investments 9.7% 10.6% 9.6% 8.2% 7.5% 8.7% repricing of investment
Slide 7: Key Player in supporting GoP and SBP initiatives
Financial Results – 2020 Key Player in supporting GoP and SBP initiatives 01 01 06 Ehsaas Temporary One of the two exclusive banks to partner Economic Fully committed in supporting SBP’s TERF with GoP for Ehsaas Programme (Cash Cash Facility for promoting investments in new and Programme Refinance (
Slide 8: Appendix
Appendix
Slide 9: Quarterly Advances & Asset quality trends
Appendix Quarterly Advances & Asset quality trends Subjective NPL classification partially offset by write-offs Coverage stands at 91% - no coverage on GoP backed NPLs NPLs NPLs/gross advances 5.0% 4.5% 4.7% 4.8% 30 100% 4.2% 4.3% 98% 25 90% 92% 4.0% 91% 20 80% 84% 83% 25.1 25.2 25.9 3.0% 22.4 23.5
Slide 10: Deposit Mix
Appendix Deposit Mix Deposit Growth Trend* (PKR bn) CASA Continues to Remain Strong* (PKR bn) 900 882 700 687 782 800 723 594 600 541 563 700 637 635 653 503 502 600 500 500 400 400 300 300 200 200 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Deposit Mix Deposits Composition 8% 22% 15
Slide 11: 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 12: 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 13: 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 14: 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) 60,086 Market Capitalization (USD mn)* 375.9 Average Daily Turnover (mn shares) 1.7 Average Daily Turnover (USD mn)* 0.6 Current Stock Price** (PKR) 33.81 12M
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