BAFL - 1QCY23 Result Review, (AKD Off the Analyst's Desk Apr 27, 2023)
Bank Alfalah Limited (BAFL) announced its earnings earlier today, wherein the bank posted NPAT of PkR10.7bn (EPS: PkR6.8), higher than our estimates. The earnings increased by 1.6xQoQ and 1.1xYoY.
- The substantial growth in earnings was driven by the increase in net interest income, clocking in at PkR27.9bn, higher by 20%QoQ and 96%YoY. The markup expense for BAFL grew by a meager 3%QoQ, while markup earned increased by 8%, leading to a NIMs expansion of ~80bpsQoQ to 5.6%.
- Non-interest income at BAFL increased by 51%QoQ to PkR6.6bn, driven by the 2.8xQoQ increase in FX income (1QCY23: PkR3.3bn). Furthermore, the bank’s fee income also witnessed an increase of 14%QoQ.
- The bank’s deposits have grown by a healthy 4.5%QoQ, in line with the industry growth, with the bank ending the period with PkR1.54tn in deposits. According to the bank press release, the CASA stood at 68% at the end of the Mar’23 quarter, compared to ~72% in the earlier quarter.
- Further respite to BAFL’s 1QCY23 earnings came in the form of lower provisioning during the period, clocking in at PkR522mn in 1QCY23, lower by 88%QoQ. The lower provisioning was attributed by the bank’s management to reversal in provisioning that was taken in the earlier quarter in view of the floods.
- The operating expenses remained largely flat on a sequential basis, clocking in at PkR15bn in 1QCY23, corresponding to a cost-to-income ratio of 43% vs. 54% in the earlier quarter.
- Lower taxation during the period further elevated earnings, with the bank’s effective tax rate clocking in at 43% during the period, compared to 52% in the previous quarter.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.