ABL & BAFL_CY19 Result Preview,(AKD Daily, Feb 07, 2020)
ABL: CY19 Result Preview
- ABL to post CY19 earnings of PkR11.24/sh, down 1.2%YoY: Allied Bank Limited (ABL) is scheduled to announce its CY19 results today where we expect it to deliver an earnings of PkR12.8bn (EPS: PkR11.24), flat vs. PkR13.0bn (EPS: 11.38) in the corresponding period last year. The results are likely to be accompanied with a final dividend of PkR2/sh, taking cumulative dividend payout for CY19 to 71.2% vs. 70.3% in CY18. 4QCY19 earnings, thereby, is likely to be recorded at PkR2.83/sh (-4.5%QoQ/10.8%YoY) where sequential decline is attributable to year-end adjustments in administrative costs (4QCY19 C/I: +8ppt QoQ to 63.1%). NIMs are likely to jack-up to 3.74% in the 4QCY19 vs. 3.47% in the previous quarter as, i) Jul’19 interest rate hikes begins to transmit into asset yields, and ii) lower FX swap costs (FX deposit occupy 11.8% of total deposits) given reduced tail risks to PKRUSD. NFI, on a sequential basis, could register a growth of 9.2%QoQ due to seasonally higher fee income (+13.2%QoQ) whereas income from equity book is likely to remain stable given reduced power sector dividends potentially compensated by higher capital gains.
BAFL: CY19 Result Preview
- BAFL 4Q earnings to jump to PkR2.43/sh, +31.5%QoQ: Bank Alfalah Limited’s (BAFL) BoD meeting is likely to be held on Feb 13, 2020 to announce CY19 results where we expect the bank to record earnings of PkR7.9/sh vs. PkR6.1/sh in the corresponding period last year. Together with the result, the bank is expected to announce a dividend of PkR2/sh (c. CY19 dividend: PkR4/sh). 4QCY19 NPAT is likely to clock-in at PkR4.3bn (EPS: PkR2.4), +31.5%QoQ/2.1xYoY, driven by NII growth of 10.0%QoQ and potential impairment reversal (9MCY19 c. impairment charge of PkR1.1bn) reducing possible accretion in credit costs. NIMs are likely to improve to 5.9% in 4QCY19 vis-à-vis 5.6% in the previous quarter as repricing kicks-in. NFI is expected to post 64.5% growth on a sequential basis with pull up coming from seasonal factor pushing up fee income growth (+52.0%QoQ) and capital gains. The 20.0%QoQ increase in total income should be able to absorb expected surge in admin costs on the back of branch expansion and digitization costs.
AKD Research
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.
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.