Bank Alfalah Limited · PSX:BAFL
Bank Alfalah — FY2019 Earnings Presentation
17 slides from Bank Alfalah's earnings presentation, March 2020
Slide 1: Analyst Briefing: 2019 Annual Performance Review & Outlook
Bank Alfalah Limited Analyst Briefing 2019 - Annual Performance Review & Outlook March 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 698 (including 162 Islamic Branches) Cities Covered 225 cities in Pakistan, 7 cities overseas Interna
Slide 3: Financial Results – 2019
Financial Results – 2019
Slide 4: Important Note on Afghanistan Operations & IFRS
Financial Results - FY 2019 Important Note on Afghanistan Operations & IFRS 16 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’. However, during
Slide 5: Profit & Loss Snapshot
Financial Results - 2019 Profit & Loss Snapshot Amount PKR mn 2018 2019 YoY 3Q19 4Q19 QoQ NII increased 41% YoY in 2019 due to higher NIMs. Interest Income 59,672 92,481 55% 24,806 26,046 5% Marginal QoQ dip in NII Interest Expenses 27,746 47,623 72% 13,146 14,500 10% reflects higher cost of depos
Slide 6: Balance Sheet Snapshot
Financial Results - 2019 Balance Sheet Snapshot Amount PKR mn Dec-18* Sep-19 Dec-19 YoY QoQ Following 25% increase in Cash 87,173 74,457 100,732 16% 35% advances in 2018, loan book reported a muted Bal with banks 7,307 5,284 4,710 -36% -11% growth of 2% YoY in 2019. Lending to FI 72,643 76,269 71,
Slide 7: Key Ratios
Financial Results - 2019 Key Ratios 4Q18* 1Q19* 2Q19 3Q19 4Q19 2019 NIMs increased 130bp for 2019 but were down Yield on Advances 8.9% 11.1% 10.9% 12.6% 12.7% 11.8% marginally in 4Q19 due to higher cost of deposits, in Yield on Investments 7.1% 7.8% 8.8% 10.6% 10.6% 9.7% line with market Cost of D
Slide 8: Deposit & Mix Cost
Financial Results - 2019 Deposit & Mix Cost Deposit Growth Trend* (PKR bn) CASA Continues to Remain Strong* (PKR bn) 900 700 782 594 800 723 600 563 700 637 635 653 503 541 502 603 600 500 446 524 500 396 400 400 300 300 200 200 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 D
Slide 9: Advances & Asset Quality Trends
Financial Results - 2019 Advances & Asset quality trends 40% of 2019 NPL accretion in OAEM (requiring no provision) … ... meant coverage ratio dipped to 79% NPLs NPLs/gross advances Provisions Coverage 5.0% 4.2% 25 100.0% 79.1% 18 3.9% 4.2% 80.6% 4.0% 3.6% 3.5% 20 86.7% 89.2% 75.0% 84.5% 16 3.0% 15
Slide 10: Appendix
Appendix
Slide 11: 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 12: 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 13: 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 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) 85,123 Market Capitalization (USD mn)* 552.0 Average Daily Turnover (mn shares) 1.0 Average Daily Turnover (USD mn)* 0.3 Current Stock Price** (PKR) 47.90 Adj
Slide 15: 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 16: 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 17: 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 17