Bank Alfalah Limited · PSX:BAFL
Bank Alfalah — 9M 2023 Earnings Presentation
21 slides from Bank Alfalah's earnings presentation, November 2023
Slide 1: Analyst Briefing: 9M 2023 Performance Review & Outlook
Bank Alfalah Limited Analyst Briefing 9M 2023 – Performance Review & Outlook November 2023
Slide 2: Overview
Bank Alfalah Limited Overview Major Sponsor Credit Rating Domestic Coverage Global Presence Dhabi Group (56.1%) Rated AA+ (Long Term) and Presence in over 225 cities 10 International Branches and 1 A1+ (Short Term) across Pakistan offshore banking unit in 4 countries Our Customers Profits Market Sha
Slide 3: Dominant Player Across Our Integrated Business Functions
Bank Alfalah Limited Dominant Player Across Our Integrated Business Functions Deposits Current deposits Home Finance Credit Cards Auto Finance Highest growth 3rd highest growth 2nd Largest ENR 2nd Largest ENR 3rd Largest ENR of 31% YOY, of 24% YOY. (Mkt share: 14.5%) (Mkt share: 26.5%) (Mkt share: 1
Slide 4: Financial Results – 9M 2023
A Bank alfalah Financial Results — 9M 2023
Slide 5: Balance Sheet Snapshot
Financial Results – 9M 2023 Balance Sheet Snapshot Amount PKR mn Sep-22 Dec-22 Jun-23 Sep-23 YoY QoQ ▪ Deposits up 31% YoY (CASA up 25%) – resulting in Cash & Bal with Treasury Bank 120,744 140,613 197,029 198,021 64% 1% improved market share, amid branch network expansion Bal with banks 19,457 9,48
Slide 6: Profit & Loss Snapshot
Financial Results – 9M 2023 Profit & Loss Snapshot ▪ On 9M basis, NII grows 68% YoY; Amount PKR mn 9M 2022 9M 2023 YoY 3Q 2022 2Q 2023 3Q 2023 YoY QoQ growth in balance sheet size and Interest Income 144,101 286,233 99% 61,676 100,868 109,776 78% 9% improved spreads after re- pricing of the well pos
Slide 7: Key Ratios
Financial Results – 9M 2023 Key Ratios 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 ▪ Improved NIMs owing to interest rate hikes supported Yield on Advances 10.1% 11.9% 12.4% 14.2% 16.2% 16.1% by volumetric growth. Yield on Investments 11.7% 13.7% 14.6% 15.9% 18.6% 19.4% ▪ Cost to income increases to 42.5% d
Slide 8: Other Initiatives
A Bank alfalah Other Initiatives
Slide 9: Awards and Recognition During the Year 2023
Awards and Recognition During the Year 2023 9
Slide 10: Awards
Awards Awards Annual CFA Pakistan Excellence Awards Institute of Chartered Accountants of Pakistan Pakistan Stock Exchange (PSX) - Winner: Gender Diversity in FI’s - 1st Prize: Best Annual Report in Banking Sector Recognised in Top 25 Companies - Winner: Best Investor Relations in FI’s - Merit Certi
Slide 11: Digital Banking Portfolio – Highlights & Key Features
Our Digital Snapshot BAFL’s digital initiatives Digital Lifestyle Branch – First in Pakistan Digital Banking Portfolio – Highlights & Key Features Digital Migration Ratio: Digital Throughput: 76% YTD Average PKR 2.7 Tn (conversion of OTC ( 84% from Sept-22) transactions to digital channels) ALFA Mal
Slide 12: The 'Sustainable' Way Forward
The ‘Sustainable’ Way Forward Highlights of sustainability efforts UN SUSTAINABILITY DEVELOPMENT GOALS ENVIRONMENT Our impact on the planet • BAFL is ahead of the curve, contributing towards 15 Total Green Assets - PKR22.3 Bn. 10 Renewable Projects with a total generation capacity of 1,426 MW of the
Slide 13: Trends Analysis
A Bank alfalah Trends Analysis
Slide 14: Trends Analysis: Financial Snapshot
Trends Analysis Financial Snapshot Deposits (PKR bn) – Domestic Market Share at 6.3% CASA Deposits (PKR bn) – CASA Ratio at 70.6% 2,000 Total Deposits Domestic Market Share 7.0% 1,500 CASA CASA Ratio 100.0% 6.3% Thousands 6.4% Thousands 6.0% 6.0% 1,800 5.6% 1,267 1,285 1,776 1,821 6.0% 1,300 90.0% 1
Slide 15: Quarterly Advances & Asset Quality Trends
Trends Analysis Quarterly Advances & Asset quality trends Infection Ratio at 5.4% Coverage remains above 100% 6.0% NPLs (PKR Bn) NPLs/gross advances 45 115% 5.4% 4.7% 110% 5.0% 4.5% 40 4.1% 4.0% 105% 37.8 37.9 4.0% 35 112% 100% 108% 32.8 104% 103% 3.0% 31.5 31.0 30 95% 102% 2.0% 25 90% 3Q22 4Q22 1Q2
Slide 16: Trends Analysis: Balance Sheet
Trends Analysis Balance Sheet Amounts in PKR mn 2017 2018 2019 2020 2021 2022 5yr CAGR Cash & Bal. With Treasury Bank 70,381 82,408 100,732 99,348 105,606 140,613 14.8% Balances With Other Banks 3,754 3,875 4,710 6,234 9,783 9,485 20.4% Lending to FIs 48,896 62,172 71,435 77,306 35,982 115,354 18.7%
Slide 17: Trends Analysis: Profit & Loss
Trends Analysis Profit & Loss Amounts in PKR mn 2017 2018 2019 2020 2021 2022 5yr CAGR Interest Income 56,920 59,672 92,519 92,616 100,402 213,897 30.3% Interest Expenses 27,354 27,746 47,623 47,911 54,134 136,558 37.9% Net Int. Income 29,565 31,926 44,896 44,705 46,268 77,340 21.2% Non Int. Income
Slide 18: Trends Analysis: Key Ratios
Trends Analysis Key Ratios 2017 2018 2019 2020 2021 2022 Capital Adequacy Ratio (Tier - I) 10.9% 12.2% 13.3% 12.7% 11.1% 11.1% Capital Adequacy Ratio Total 13.4% 15.0% 16.9% 16.5% 14.4% 13.8% Net Interest Margins 3.6% 4.0% 5.3% 4.3% 3.4% 4.2% Admin Cost to Income Ratio 64.8% 57.3% 52.6% 54.7% 58.1%
Slide 19: Stock Market Related Data
Bank Alfalah Limited Stock Market Related Data Bloomberg Code BAFL PA Reuters Code BAFL.KA Shares Outstanding (mn) 1,577.17 Market Capitalization (PKR bn)** 62,077 Market Capitalization (USD mn)* 221 Average Daily Turnover (mn shares) - 12M 2.89 Average Daily Turnover (USD mn) - 12M 373.98 Current S
Slide 20: Contact Details
Bank Alfalah Limited Contact Details For any queries: Syed Akbar Ali, CFA, FRM Head of Capital Markets & Investor Relations Bank Alfalah Limited Phone: +92 (21) 3242 3617 E-mail: syed.akbar@bankalfalah.com 20
Slide 21: Disclaimer
Bank Alfalah Limited 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, estimat