Bank Alfalah Limited · PSX:BAFL
Bank Alfalah — Q3 2013 Earnings Presentation
19 slides from Bank Alfalah's earnings presentation, Nov 12, 2013
Slide 1: Analyst Briefing - 3Q 2013 Performance Review & Outlook
Analyst Briefing ‐ 3Q 2013 Performance Review & Outlook 12, November 2013
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 501 (including 114 Islamic Branches) Cities Covered 184 cities in Pakistan, 6 cities overseas International Presence 11 Internation
Slide 3: Balance Sheet Snapshot
Balance Sheet Snapshot Amount PRs Mn Sep‐12 Dec‐12 Jun‐13 Sep‐13 YoY YTD Balance sheet size increased by 12% YoY to Cash 42,957 58,044 55,854 62,375 45% 7% PRs576bn. Bal with banks 19,416 26,721 26,635 28,542 47% 7% Deposits increased 18% Lending to FI 11,196 877 5,834 2,480 ‐78% 183% YoY with C
Slide 4: Profit & Loss Snapshot
Profit & Loss Snapshot Amount PRs Mn 3Q12 3Q13 YoY 9M12 9M13 YoY Net Interest Income (NII) declined 2% YoY in 3Q due Interest Income 12,032 10,851 ‐10% 34,775 32,291 ‐7% to lower discount rate. On Interest Expenses 7,272 6,195 ‐15% 20,896 19,773 ‐5% QoQ basis, NII increased by 15% as NIMs improved
Slide 5: Key Ratios
Key Ratios Amount PRs Mn 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 Robust deposit growth of 18% YoY versus industry IS & Bal Sheet growth of 13% while CASA ROA 1.0% 0.9% 0.8% 0.9% 0.7% 0.7% 1.0% mix increased 280bps to 74%. ROE exc. surplus 21.6% 20.1% 18.2% 18.6% 16.8% 15.2% 21.2% NIM 4.7% 4.4% 4.4% 4.2
Slide 6: 3Q13 Performance Review
| 3Q13 Performance Review é yaedizy ad} BANK ALFALAH
Slide 7: Advances & Asset Quality Trends
Advances & Asset Quality Trends Improving asset quality with reduced NPL accretion Coverage has increased to 68% NPLs NPLs/gross advances 80% Provisions Coverage 25 10.0% 50 9.0% 9.6% 9.6% 40 60% 65% 67% 68% 20 9.1% 8.9% 62% 63% 8.8% 59% 58% 8.0% 8.6% 8.5% 30 40% 15 7.0% 24 20 14 14 14 15 20 21 22 2
Slide 8: Deposit Mix & Cost
Deposit Mix & Cost Continuous deposit growth Rising CASA concentration 600 500 500 74% 400 493 72% 457 400 69% 367 401 300 328 354 64% 300 325 277 57% 200 225 200 184 100 100 ‐ ‐ 2009 2010 2011 2012 Sep‐13 2009 2010 2011 2012 Sep‐13 Cost of Deposits contained despite increase in MDR Deposits composi
Slide 9: Non Interest Income
Non Interest Income Non Interest Income (PRsmn) 9M12 9M13 YoY Fee, Commission & Brokerage 1,841 2,082 13% Dividend Income 221 375 70% Income from dealing in FX 1,054 1,125 7% Gain on sale & unrealized gain on HFT 589 1,032 75% Other income 1,342 1,342 0% Total 5,047 5,956 18% 9
Slide 10: Way Forward
| Way Forward d yard ey} BANK ALFALAH
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 d yard ey} BANK ALFALAH
Slide 14: Balance Sheet Summary
Balance Sheet Summary CAGR Amount in PRs Mn 2008 2009 2010 2011 2012 (2008‐12) Cash & Bal. with treasury bank 32,687 35,056 41,198 50,883 58,044 15% Balances with other banks 21,581 22,723 16,179 17,424 26,721 6% Lending to Financial Institutions 3,316 14,947 6,498 7,765 877 ‐28% Advances (net) 191,
Slide 15: Profit & Loss Summary
Profit & Loss Summary CAGR Amount in PRs Mn 2008 2009 2010 2011 2012 (2008‐12) Interest income 30,967 35,561 37,530 44,298 46,080 11% Interest expense 20,494 24,654 23,855 25,687 27,500 8% Net interest income 10,472 10,907 13,675 18,611 18,580 15% Impairment & Provisions 3,543 4,072 4,260 4,330 3,55
Slide 16: Key Ratios
Key Ratios 2008 2009 2010 2011 2012 Capital Adequacy Ratio (CAR) 8.0% 12.5% 10.5% 11.6% 12.7% Net Interest Margins 3.6% 3.5% 4.1% 5.1% 4.4% Admin Cost to Income Ratio 64.1% 67.9% 68.4% 57.7% 58.8% Non Interest Income as % of total 31.5% 32.2% 25.6% 22.4% 28.2% Advance to Deposit Ratio (ADR) 66.1% 60
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) 33.39 Market Capitalization (US$mn)* 310.6 Average Daily Turnover (mn shares) 4.8 Average Daily Turnover (US$mn)* 1.0 Current Stock Price** 24.75 1
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 [email protected]