ABL_1QCY21 Result Review (Above Expectation), (AKD, Off the Analyst's Desk, April 22, 2021)
AKD, Off the Analyst's Desk
ABL: 1QCY21 Result Review (In-Line)
- Allied Bank Limited (ABL) announced its 1QCY21 results today where earnings clocked in at PkR4.1bn (EPS: PkR3.59) compared to PkR3.9bn (EPS: PkR3.40) in the same period last year. The result release came in line with our expectations.
- Together with the result, the bank announced a dividend of PkR2/sh.
- On a sequential basis, earnings dropped 28.4% on account of normalization in provisioning levels (1QCY21 reversal stood at PkR0.1bn compared to PkR1.4bn in the previous quarter) and diminishing gross yield (1QCY21: 45.4% vs. 47.0% in the previous quarter) taking its toll on net interest income (down 3.8%).
- Non-funded income improved 10.8%QoQ driven largely by capital gains to the tune of PkR1.5bn in 1QCY21 against PkR0.7bn in the previous quarter. Fee income also improved 14.6%QoQ.
- Effective tax rate normalized to 39.7% in 1QCY20 vs. 30.2% in the previous quarter.
AKD Research
Allied Bank Ltd. Allied Bank Limited is engaged in providing commercial banking and related services. The Bank's segments include Corporate & investment banking, Trading and sales (Treasury), Commercial & retail banking and Others. The Corporate & investment banking segment offers a range of financial services to medium and large sized public and private sector entities, and also covers overseas operation of the Bank. These services include providing and arranging tenured financing, corporate advisory, underwriting, cash management, corporate finance products and customer services. The Trading and sales (Treasury) segment undertakes the Bank's treasury and money market activities. The Commercial & retail banking segment provides services to commercial and retail customers, including agriculture sector. The Commercial & retail banking segment offers loans, deposits and other transactions to commercial and retail customers. Its other services include phone banking and utility bill payments.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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