Report
EUR 8.92 For Business Accounts Only

BAHL_CY19 Result Review, (AKD, Off the Analyst's Desk, Jan 29, 2020)

BAHL: CY19 Result Review                                                            (Inline)

 

·         Bank ALHabib Limited (BAHL), in line with our expectation, reported CY19 NPAT of PkR11.1bn (EPS: PkR10.1) vs. PkR8.4bn (EPS: PkR7.6) in the corresponding period last year. The result was accompanied with a dividend of PkR3.5/sh. 

·         On a quarterly basis, 4QCY19 NPAT clocked in at PkR4.2bn (EPS: PkR3.77, +64.6%QoQ/67.0%YoY).

·         Gross Yield clocked in at 35.1% in 4QCY19, flat QoQ, however down 11.8ppt YoY which indicates that repricing cycle is not complete yet. Furthermore, higher leverage to book higher yields might have also contributed in dampening gross yield.

·         Non-Interest contribution to total income improved to 21.8% in 4QCY19 vs. 16.6% in previous quarter attributable to higher fee income (PkR2.0bn in 4QCY19 vs. PkR1.3bn in the previous quarter) and FX income (PkR833mn in 4QCY19 vs. PkR394mn in 3QCY19).

·          Higher income generation pulled down and normalized C/I to 52.7% in 4QCY19 vs. 60.3% in the previous quarter. Furthermore, lower effective tax rate of 32.0% in 4QCY19 vs. 41.2% in the previous quarter additionally supported the bottom line

Underlying
Bank AL-Habib

Bank AL Habib Limited. Bank AL Habib Limited is a banking company. The Bank operates through Retail banking, Commercial banking, Retail brokerage and geographical segments. Its Retail banking consists of retail lending, deposits and banking services to private individuals and small businesses. The retail banking activities include provision of banking and other financial services, such as current and savings accounts, and credit cards to individual customers, and small and medium enterprises (SMEs). Its Commercial banking represents provision of banking services, including treasury and international trade-related activities to corporate customers, multinational companies, and government and semi government departments and institutions. Its Retail brokerage activities include the business of equity, money market and foreign exchange brokerage, equity research, and corporate financial advisory and consultancy services. It operates in four geographic regions: Pakistan, the Middle East, Asia Pacific and Africa.

Provider
AKD Securities Limited
AKD Securities Limited

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.

Analysts
Ailia Naeem

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