Bank Alfalah Limited · PSX:BAFL
Bank Alfalah — Q3 2021 Earnings Presentation
18 slides from Bank Alfalah's earnings presentation, November 2021
Slide 1: Analyst Briefing: 2021 Third Quarter Performance Review & Outlook
Bank Alfalah Limited Analyst Briefing 2021 – Third Quarter Performance Review & Outlook November 2021
Slide 2: Overview and Financial Snapshot
Bank Alfalah Limited Overview and Financial Snapshot Major Sponsors Credit Rating Domestic Coverage Global Presence Sponsors include Dhabi Group Rated AA+ (Long Term) and A1+ Presence in over 225 cities across 11 International Branches in 4 (50%); IFC (15%) (Short Term) Pakistan countries Our Custom
Slide 3: Financial Results – 3Q21
Financial Results – 3Q21
Slide 4: Key Highlights
Bank Alfalah Limited Key Highlights Deposits consolidate above PKR1 trillion Profit after Tax grows by 29% YoY 26% YoY growth as deposits clock in at PKR1.036 PAT is up 29% YoY (flat sequentially) driven by trillion – with 45% current account mix firm revenues and lower provisions Capturing flows ai
Slide 5: Balance Sheet Snapshot
Financial Results – 3Q21 Balance Sheet Snapshot Amount PKR mn Sep-20 Dec-20 Sep-21 YoY YTD Crossing PKR1 trillion mark in Jun-21, deposits Cash 79,502 99,348 87,561 10% -12 continued growing with 26% YoY growth in Sep-21. Bal with banks 3,192 6,234 8,979 181% 44% Lending to FI 53,161 77,306 47,094
Slide 6: Profit & Loss Snapshot
Financial Results – 3Q21 Profit & Loss Snapshot Amount PKR mn 9M20 9M21 YoY 3Q20 2Q21 3Q21 YoY QoQ NII –adjustment to overseas NII & recoveries in 2Q21 Interest Income 71,736 71,664 0% 21,787 24,525 25,751 18% 5% muted growth to 2% QoQ. Interest Expenses 37,269 37,771 1% 10,681 12,867 13,843 30% 8
Slide 7: Key Ratios
Financial Results – 3Q21 Key Ratios 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 NIMs dropped 20bp QoQ, as deposit cost inched up, while Yield on Advances 9.7% 8.2% 7.2% 7.2% 7.5% 7.2% advances yield normalized from 2Q21 one off recoveries. Yield on Investments 9.6% 8.2% 7.5% 7.3% 7.5% 7.3% Cost of Deposits 4.2%
Slide 8: BAFL participation in GoP Initiatives
BAFL participation in GoP Initiatives
Slide 9: Key Player in supporting GoP and SBP initiatives
Bank Alfalah Limited Key Player in supporting GoP and SBP initiatives 01 01 02 G2P Temporary BAFL remains one of the preferred Economic Among Top 3 participants with PKR50bn+ of partners in this space, being an active initiatives SBP’s TERF Facility provided to more than 100 Refinance (TERF) partici
Slide 10: Appendix
Appendix
Slide 11: Quarterly Advances & Asset quality trends
Appendix Quarterly Advances & Asset quality trends Marginal decline in NPLs lowers infection ratio to 3.7% Coverage stands at 101% - no coverage on GoP backed NPLs NPLs NPLs/gross advances 5.0% 4.8% 30 100% 4.3% 4.2% 3.9% 3.7% 98% 99% 101% 25 90% 94% 4.0% 91% 20 80% 25.2 25.9 25.4 25.1 25.0 3.0% 15
Slide 12: Deposit Mix
Appendix Deposit Mix Deposit Growth Trend* (PKR bn) CASA Continues to Remain Strong* (PKR bn) 1100 1,036 814 800 882 687 900 700 782 594 723 600 541 563 700 637 635 653 503 502 500 400 500 300 300 200 2015 2016 2017 2018 2019 2020 3Q21 2015 2016 2017 2018 2019 2020 3Q21 Deposit Mix Deposits Composit
Slide 13: 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 14: 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 15: 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 16: 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) 64,615 Market Capitalization (USD mn)* 376 Average Daily Turnover (mn shares) 1.9 Average Daily Turnover (USD mn)* 0.4 Current Stock Price** (PKR) 36.36 12M H
Slide 17: 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 18: 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 18