Bank Alfalah

Bank Alfalah Ltd. Bank Alfalah Limited is a holding company. The Company's segments include Retail banking, including loans, deposits, trading activity, wealth management and other banking transactions with its retail and middle market customers; Corporate banking, which includes loans, deposits, project financing, trade financing, investment banking and other banking activities with its corporate and public sector customers; Treasury, including liquidity management activities carried out through borrowing, lending and money market operations; Consumer banking, including constitutes consumer financing activities with individual customers; Islamic banking, pertaining to its full scale Islamic Banking operations; International operations, which includes amounts related to its overseas operations, namely, commercial banking activities in Bangladesh and Afghanistan, and wholesale banking activities in the Kingdom of Bahrain, and Others, including merchant banking related activities.
  • TickerBAFL
  • ISINPK0078701015
  • ExchangePakistan Stock Exchange
  • SectorBanks
  • CountryPakistan

BAFL_Price decline makes yield attractive, (AKD Daily, Jul 9, 2020)

AKD Daily BAFL: Price decline makes yield attractive Bank Alfalah Limited’s (BAFL) stock price receded by 28.7% in the past 6M matching downward revisions in the bank’s one-year fwd TP to PkR38.0/sh as against PkR48.9/sh previously. In turn, this softening has raised the lure of  attractive dividend yield on offer (8.7/8.7% for CY20/21). Revisions were prompted by weakened earnings outlook given, i) higher sensitivity to interest rates amongst conventional peers (Mar’20: 1.21x vs. avg. 1.02x of our conventional banking universe), and ii) late cycle growth push (50 branches added over the ...

Team AKD Research

Stock Smart Weekly (Jun 26, 2020)

StockSmart                        Weekly Review                                 KSE-100 made a turn for the better, closing 1.5% higher WoW at 33,939 points. Major events during the week included fresh inflow of US$1.725mn during the outgoing week, stabilizing the local currency. At the end of the week, the SBP cut the policy rate by a further 100bps to 7% to spur economic growth. The latest move took cumulative easing to 625bps CYTD. Important economic data points released during the week included: (i) FDI, which declined 53%YoY in May’20 due to COVID-19 and, (ii) current account, whereby ...

Raza Jafri ...
  • Yusra Beg

Pakistan banks: Tough times ahead; downgrade sector to Marketweight

* We downgrade our stance on Pakistan banks to Marketweight following the acute impact of Covid-19 on the economy and the sector. There are significant risks on revenue, particularly from tighter margins after the 425bps rate cut, while asset quality headwinds may persist for the next few years. A step increase in digital banking is possible, but this will not offset the weak near-term outlook. * The SBP has acted quickly to protect borrowers, but stress on banks looks unavoidable. We cut C...

Yusra Beg

Bank Alfalah: 1QCY20 results – Subjective provisions lead to a miss

BAFL has posted 1QCY20 consolidated NPAT of PKR2,892mn (EPS: PKR1.63), down 9%yoy and 13%qoq. The result is below our projected EPS of PKR1.86, with the deviation stemming from (i) higher than expected provisioning which we understand is due to the subjective downgrading of certain loans and (ii) a capital loss likely on the equities portfolio. 1QCY20 KEY RESULT HIGHLIGHTS NII came in-line with expectations at PKR11,780mn, up 6%yoy and 2%qoq. We believe the full impact of repricing of the ass...

BAFL: High provisioning keeps earnings lower than estimates

Bank Alfalah Limited (BAFL) announced its earnings for 1QCY20 in which the bank posted PAT of PKR 2,821 Mn (EPS: PKR 1.59). The earnings announcement disappointed our expectations due to higher administrative and provisioning expenses. Net-Interest Income of the bank improved by 6%/2% YoY/QoQ during the period to clock-in at PKR 11,781 Mn. The change in NII was largely in-line with estimates. High operating expenses during the quarter (cost to income ratio at 56% vis-à-vis 52% in 4QCY19) were major dampeners to our estimates. Increase in cost was possibly on account of 26 new branches (19 co...

Bank Al-falah Ltd: 2 directors sold

Two Directors at Bank Al-falah Ltd sold 173,500 shares at between 53.750PKR and 54.000PKR. The significance rating of the trade was 54/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing r...

Raza Jafri ...
  • Yusra Beg

Pakistan Banks: Central bank announces relief package for borrowers

The State Bank of Pakistan (SBP), in collaboration with the Pakistan Bankers Association (PBA), has announced a relief package for stakeholders affected by the Covid-19 outbreak. Salient measures include the following: Reduction in Capital Conservation Buffer (CCB) to 1.5% In order to create additional liquidity for banks, the SBP has reduced the Capital Conservation Buffer (CCB) from 2.5% to 1.5%. This should enable banks to lend up to PKR800bn, or c10% of outstanding loans. We flag that mos...

BAFL_Price decline makes yield attractive, (AKD Daily, Jul 9, 2020)

AKD Daily BAFL: Price decline makes yield attractive Bank Alfalah Limited’s (BAFL) stock price receded by 28.7% in the past 6M matching downward revisions in the bank’s one-year fwd TP to PkR38.0/sh as against PkR48.9/sh previously. In turn, this softening has raised the lure of  attractive dividend yield on offer (8.7/8.7% for CY20/21). Revisions were prompted by weakened earnings outlook given, i) higher sensitivity to interest rates amongst conventional peers (Mar’20: 1.21x vs. avg. 1.02x of our conventional banking universe), and ii) late cycle growth push (50 branches added over the ...

Team AKD Research

Stock Smart Weekly (Jun 26, 2020)

StockSmart                        Weekly Review                                 KSE-100 made a turn for the better, closing 1.5% higher WoW at 33,939 points. Major events during the week included fresh inflow of US$1.725mn during the outgoing week, stabilizing the local currency. At the end of the week, the SBP cut the policy rate by a further 100bps to 7% to spur economic growth. The latest move took cumulative easing to 625bps CYTD. Important economic data points released during the week included: (i) FDI, which declined 53%YoY in May’20 due to COVID-19 and, (ii) current account, whereby ...

Raza Jafri ...
  • Yusra Beg

Pakistan banks: Tough times ahead; downgrade sector to Marketweight

* We downgrade our stance on Pakistan banks to Marketweight following the acute impact of Covid-19 on the economy and the sector. There are significant risks on revenue, particularly from tighter margins after the 425bps rate cut, while asset quality headwinds may persist for the next few years. A step increase in digital banking is possible, but this will not offset the weak near-term outlook. * The SBP has acted quickly to protect borrowers, but stress on banks looks unavoidable. We cut C...

Yusra Beg

Bank Alfalah: 1QCY20 results – Subjective provisions lead to a miss

BAFL has posted 1QCY20 consolidated NPAT of PKR2,892mn (EPS: PKR1.63), down 9%yoy and 13%qoq. The result is below our projected EPS of PKR1.86, with the deviation stemming from (i) higher than expected provisioning which we understand is due to the subjective downgrading of certain loans and (ii) a capital loss likely on the equities portfolio. 1QCY20 KEY RESULT HIGHLIGHTS NII came in-line with expectations at PKR11,780mn, up 6%yoy and 2%qoq. We believe the full impact of repricing of the ass...

BAFL: High provisioning keeps earnings lower than estimates

Bank Alfalah Limited (BAFL) announced its earnings for 1QCY20 in which the bank posted PAT of PKR 2,821 Mn (EPS: PKR 1.59). The earnings announcement disappointed our expectations due to higher administrative and provisioning expenses. Net-Interest Income of the bank improved by 6%/2% YoY/QoQ during the period to clock-in at PKR 11,781 Mn. The change in NII was largely in-line with estimates. High operating expenses during the quarter (cost to income ratio at 56% vis-à-vis 52% in 4QCY19) were major dampeners to our estimates. Increase in cost was possibly on account of 26 new branches (19 co...

Raza Jafri ...
  • Rohit Kumar
  • Yusra Beg

Pakistan: Central bank defers IFRS-9 implementation to January 2021

Keeping in view the initial impact and readiness assessment (eg impact on capital ratios) conducted by Pakistan’s banking industry, the State Bank of Pakistan (SBP) has issued a circular on reporting guidelines for IFRS-9 (financial instruments) and decided to defer roll-out to January 2021. Banks will have to perform a parallel run of IFRS 9 in their financials from 1 January 2020 to gauge the IFRS-9 affected outcomes. However, we understand this will not be disclosed in the published accounts and will be reported to SBP directly.

BAFL: Getting into big leagues! (AKD Daily, Aug 29, 2019)

Bank Alfalah Limited (BAFL) reported 1HCY19 NPAT of PkR6.5bn (EPS: PkR3.63) vs. PkR6.2bn (EPS: PkR3.48) in the corresponding period last year. On a quarterly basis, 2QCY19 NPAT clocked in at PkR3.3bn (EPS: PkR1.84, +2.6%QoQ/12.1%YoY). We update our investment case for Bank Alfalah Limited (BAFL) post release of 1HCY19 financial results, increasing our risk free rate assumption and rolling over our target price to Dec’20, our revise TP stands at PkR51.3/sh (previous: PkR50.9/sh). The stock is currently trading at a CY20F P/B of 0.7x after having returned 2.0% (Banking sector: -ve 13.3%) durin...

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch