Bank Alfalah Limited · PSX:BAFL
Bank Alfalah — FY2013 Earnings Presentation
19 slides from Bank Alfalah's earnings presentation, Mar 13, 2014
Slide 1: Analyst Briefing - 2013 Performance Review & Outlook
Analyst Briefing ‐ 2013 Performance Review & Outlook 13 March 2014
Slide 2: Basic Data & Market Positioning
Basic Data & Market Positioning Commencement of operations 1997 Head Quarters Karachi Major Sponsors Dhabi Group Credit Rating (Long Term/ Short Term) AA / A1+ Branches 574 (including 140 Islamic Branches) Cities Covered 197 cities in Pakistan, 6 cities overseas International Presence 11 Internation
Slide 3: Balance Sheet Snapshot
Balance Sheet Snapshot Amount PRs Mn Dec‐12 Sep‐13 Dec‐13 QoQ YoY Balance sheet size increased by 14% YoY to Cash 58,044 62,375 61,205 ‐2% 5% PRs611bn. Bal with banks 26,721 28,542 35,180 23% 32% Deposits increased 15% Lending to FI 877 2,480 2,522 2% 188% YoY with market share Advances (net) 23
Slide 4: Profit & Loss Snapshot
Profit & Loss Snapshot Amount PRs Mn 4Q12 4Q13 YoY 2012 2013 YoY Despite linkage of savings rate with SBP repo rate, Interest Income 11,304 11,670 3% 46,080 43,961 ‐5% cost of funds depicted YoY Interest Expenses 6,604 7,294 10% 27,500 27,066 ‐2% decline of 2%. Lower discount rate however Net Int
Slide 5: Key Ratios
Key Ratios Amount PRs Mn 2012 1Q13 2Q13 3Q13 4Q13 2013 Robust deposit growth of 15% YoY versus industry IS & Bal Sheet growth of 13%. ROA 0.9% 0.7% 0.7% 1.0% 0.9% 0.8% Due to expansion phase ROE exc. surplus 18.9% 16.8% 15.2% 21.2% 19.7% 17.4% and lower interest rates, cost to income ratio NIM 4
Slide 6: 4Q13 Performance Review
| 4Q13 Performance Review é paedizy a} BANK ALFALAH
Slide 7: Advances & Asset Quality Trends
Advances & Asset Quality Trends Improving asset quality with reduced NPL accretion Coverage has increased to 69% NPLs NPLs/gross advances Provisions Coverage 12% 50 100% 25 9.6% 10% 8.9% 8.6% 40 80% 68% 69% 20 8.5% 63% 67% 58% 8% 30 60% 15 6.6% 14 14 14 15 6% 24 20 40% 12 10 22 21 21 18 4% 10 20% 5
Slide 8: Deposit Mix & Cost
Deposit Mix & Cost Continuous deposit growth Rising CASA concentration 600 500 71% 500 526 400 72% 457 69% 374 400 300 328 401 64% 57% 277 300 354 200 325 225 184 200 100 100 ‐ 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Regulatory changes impacted CoD Deposits composition December 2013 7% 8%
Slide 9: Non Interest Income
Non Interest Income Non Interest Income (PRsmn) 2012 2013 YoY Fee, Commission & Brokerage 2,537 2,800 10% Dividend Income 349 483 38% Income from dealing in FX 1,310 1,536 17% Gain on sale of securities 1,330 1,597 20% Other income 1,756 1,862 6% Total 7,281 8,279 14% 9
Slide 10: Way Forward
| Way Forward A yard ey} BANK ALFALAH 10
Slide 11: Focus Areas
Focus Areas Bank Alfalah Platform Future Areas of Focus Diverse Customer Base 1 2 Banking Footprint Across all Segments Transacting Cross‐sell Convenience Reach and Scale ‐ 6th Largest Bank 3 4 Leverage Leading Leading position in SME, Consumer and Productivity Segment Platforms Islamic Enhancement
Slide 12: Future Areas of Focus
Future Areas of Focus • Transacting ease – access through multiple channels, customized products, service quality 1 • Expand branches– increase network to 700 branches by 2015 Enhance Transacting • Multiple channels: − Mobile, internet and ATM platforms Convenience − Branchless banking platform (JV
Slide 13: Appendix
| Appendix A yard ey} BANK ALFALAH 13
Slide 14: Balance Sheet Summary
Balance Sheet Summary CAGR Amount in PRs Mn 2008 2009 2010 2011 2012 2013 (2008‐13) Cash & Bal. with treasury bank 32,687 35,056 41,198 50,883 58,044 61,205 13% Balances with other banks 21,581 22,723 16,179 17,424 26,721 35,180 10% Lending to FIs 3,316 14,947 6,498 7,765 877 2,522 ‐5% Advances (net
Slide 15: Profit & Loss Summary
Profit & Loss Summary CAGR Amount in PRs Mn 2008 2009 2010 2011 2012 2013 (2008‐13) Interest income 30,967 35,561 37,530 44,298 46,080 43,961 7% Interest expense 20,494 24,654 23,855 25,687 27,500 27,066 6% Net interest income 10,472 10,907 13,675 18,611 18,580 16,895 10% Loan Loss Provision 2,064 3
Slide 16: Key Ratios
Key Ratios 2008 2009 2010 2011 2012 2013 Capital Adequacy Ratio (Tier‐I) 6.0% 8.1% 7.1% 8.6% 8.5% 8.4% Capital Adequacy Ratio Total 8.0% 12.5% 10.5% 11.6% 12.6% 12.1% Net Interest Margins 3.6% 3.5% 4.1% 5.1% 4.4% 3.5% Admin Cost to Income Ratio 64.1% 67.9% 68.4% 57.7% 58.8% 68.7% Non Interest Income
Slide 17: Stock Market Related Data
Snapshot of the Bank Stock Market Related Data Bloomberg Code BAFL PA Reuters Code BAFL.KA Shares Outstanding (mn) 1349.16 Market Capitalization (PRsbn) 38.05 Market Capitalization (US$mn)* 387.83 Average Daily Turnover (mn shares) 4.26 Average Daily Turnover (US$mn)* 1.00 Current Stock Price** 28.2
Slide 18: Disclaimer
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 projections as
Slide 19: Contact Information
Contact Information For any queries: Imtiaz Gadar, CFA Head of Public Markets Bank Alfalah Limited Ph# +92 21 3241 6979 +92 21 3242 3617 Imtiaz.gadar@bankalfalah.com 19