Bank Alfalah Limited · PSX:BAFL
Bank Alfalah — Q2 2019 Earnings Presentation
16 slides from Bank Alfalah's earnings presentation, Aug 27, 2019
Slide 1: Analyst Briefing – 2Q 2019 Performance Review & Outlook
Analyst Briefing – 2Q 2019 Performance Review & Outlook 27th August 2019
Slide 2: Introductory Snapshot – Data as of June 30th 2019
Introductory Snapshot – Data as of June 30th 2019 Commencement of Operations 1997 Head Quarters Karachi Major Sponsors Dhabi Group Credit Rating (Long Term / Short Term) AA+ / A1+ Branches 668 (including 154 Islamic Branches) Cities Covered 225 cities in Pakistan, 7 cities overseas International Pre
Slide 3: Important Note on Afghanistan Operations
Important Note on Afghanistan Operations Afghanistan Operations 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 the current per
Slide 4: Profit & Loss Snapshot
Profit & Loss Snapshot Amount PKR mn 1H18 1H19 YoY 2Q18 2Q19 YoY NII increased by 34% YoY in 2Q19 due to higher NIMs Interest Income 28,092 41,629 48% 13,823 20,872 51% and avg earning assets. Interest Expenses 12,736 19,977 57% 6,021 10,382 72% On sequential basis, decline Net Int Income 15,356
Slide 5: Balance Sheet Snapshot
Balance Sheet Snapshot Amount PKR mn Jun-18* Dec-18* Jun-19 YoY YTD Increase in cash balances at 2Q end is a temporary Cash 87,296 87,173 108,307 24% 24% phenomenon. Bal with banks 17,642 7,307 9,159 -48% 25% Advances growth Lending to FI 15,574 72,638 48,088 209% -34% remained muted at 3% YoY;
Slide 6: Key Ratios
Key Ratios 2Q18* *3Q18 4Q18* 1Q19 2Q19 NIMs grew 130bps YoY, aided by higher yields and Yield on Advances 7.3% 7.8% 8.9% 11.1% 10.9% effective management of cost of deposits. Yield on Investments 6.5% 6.7% 7.1% 7.8% 8.8% Marginal QoQ drop is due Cost of Deposits 2.6% 2.9% 3.6% 4.4% 4.6% to on-of
Slide 7: 2Q 2019 Performance Review
2Q 2019 Performance Review
Slide 8: Advances & Asset Quality Trends
Advances & Asset Quality Trends NPLs mostly contained Specific Coverage remains strong 6% NPLs NPLs/gross advances 30 Provisions Coverage 25 100.0% 90.7% 89.2% 3.9% 87.9% 84.5% 86.7% 5% 3.6% 3.5% 23 20 3.5% 3.3% 80.0% 15 18.8 18.7 15.9 16.2 16.0 3% 17.0 17.9 15 15.1 14.9 16.6 60.0% 10 2% 8 40.0% 5 0
Slide 9: Deposit Mix & Cost
Deposit Mix & Cost Deposit Growth Trend* (PKR bn) CASA Continues to Remain Strong* (PKR bn) 900 800 800 700 700 83% 723 741 600 85% 78% 611 600 637 635 653 79% 77% 563 603 500 74% 541 500 503 502 524 75% 400 446 400 396 300 300 200 200 2013 2014 2015 2016 2017 2018 2Q19 2013 2014 2015 2016 2017 2018
Slide 10: Appendix
Appendix
Slide 11: Balance Sheet Summary
Balance Sheet Summary 5yr Amounts in PKR mn 2013 2014 2015 2016 2017 2018 CAGR Cash & Bal. With Treasury Bank 61,205 50,516 62,369 74,071 70,381 82,408 6% Balances With Other Banks 34,764 12,332 16,552 9,373 3,754 3,875 -36% Lending to FIs 2,522 18,313 27,626 30,149 48,896 62,172 90% Advances (Net)
Slide 12: Profit & Loss Summary
Profit & Loss Summary 5yr Amounts in PKR mn 2013 2014 2015 2016 2017 2018 CAGR Interest Income 43,961 55,378 61,439 57,144 56,176 59,318 6% Interest Expense 27,066 33,505 32,811 28,153 27,199 27,727 0% Net Interest Income 16,895 21,873 28,628 28,991 28,976 31,591 13% NPL & Other Provisions 894 1,928
Slide 13: Key Ratios
Key Ratios 2013 2014 2015 2016 2017 2018 Capital Adequacy Ratio (Tier - I) 8.4% 9.6% 9.7% 9.9% 10.9% 12.2% Capital Adequacy Ratio Total 12.1% 12.8% 13.4% 13.2% 13.4% 15.0% Net Interest Margins 3.5% 3.8% 4.0% 3.6% 3.6% 4.0% Admin Cost to Income Ratio 68.8% 67.3% 60.3% 62.5% 64.8% 57.3% Non - Interest
Slide 14: Snapshot of the Bank Stock Market Related Data
Snapshot of the Bank Stock Market Related Data Bloomberg Code BAFL PA Reuters Code BAFL.KA Shares Outstanding (mn) 1774.4 Market Capitalization (PKR bn) 72,821 Market Capitalization (USD mn)* 462.7 Average Daily Turnover (mn shares) 0.7 Average Daily Turnover (USD mn)* 0.2 Current Stock Price** 40.9
Slide 15: 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 16: Contact Information
Contact Information For any queries: Imtiaz Gadar, CFA Head of Capital Markets Division Bank Alfalah Limited Phone: +92 21 3242 3617 E-mail: [email protected] 16