BAHL_3QCY22 Analyst Briefing Takeaways, (AKD Off the Analyst's Desk Nov 14, 2022)
Bank AL Habib Limited (BAHL) held its corporate briefing earlier today, wherein the bank apprised of the following:
- To recall, the bank posted NPAT of PkR5.3bn for 3QCY22 (EPS: PkR 4.80), higher by 9%YoY. In the 9MCY22 period, the bank posted earnings of PkR15.0bn (EPS: PkR 13.47), higher by 7%YoY.
- BAHL posted provisions of PkR2.4bn in 9MCY22—largely driven by provisioning under IFRS-9 related to the Sri Lankan sovereign bonds, which have been majorly provided for.
- BAHL’s ADR at the period end stood at 52.5%, higher than the 50% threshold that shielded it from higher taxation. Furthermore, despite the increasing deposits, the bank has maintained an ADR north of 50%, with the bank guiding towards similar ADR levels going forward.
- Talking about the Asset Quality, the management indicated that most of its advances are in the Textile sector, wherein it has faced some delays in payments. However, it is confident that no significant risks are posed by its advances portfolio.
- FX Income during the period clocked in at PkR5.7bn (PkR5.11/sh) for the 9MCY22 period, higher by 200% compared to the same period last year. PkR2.6bn in FX income was recorded only in 3QCY22. The management does not envision similar gains in the future.
- Regarding its investment portfolio, the bank apprised that it holds 20% in Fixed PIBs, 50% in Floating PIBs, 10% Sukuks, and 20% T-Bills.
- BAHL’s CET1 CAR stood at 9.6% as of Sep’22, higher than the regulatory requirement of 8.5%.
- The bank’s branch strength at the end of the period stood at 1,019 branches, compared to 927 branches at the end of CY21. Of these, the bank has 165 Islamic branches, compared to 138 at the end of CY21. Management guided towards less than 50 new branches in CY23, while continuing the conversion to Islamic branches.
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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