BAFL: CY19 Result Review, (AKD, Off the Analyst's Desk, Feb 14, 2020)
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BAFL: CY19 Result Review (Below Expectation) |
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Bank Alfalah Limited (BAFL) announced its full CY19 results where the bank reported earnings of PkR13.0bn (EPS: PkR7.35) vs. PkR10.9bn (EPS: PkR6.14) in the corresponding period last year. The result came in below our expectation. Major deviation from our expectation is due to, i) NII remaining flat QoQ on account of repricing of certain deposit categories at a time when ‘markup suspension’ dragged Gross interest income, ii) fee income falling 14.1/18.7% QoQ/YoY owing to flat BISP related income and disallowance of certain fees charged by the industry in general, and iii) change in accounting treatment of an associate pulling down its income contribution. On a brighter side, i) FX income jumped 35.3%QoQ despite stable currency environment, and ii) administrative costs remained flat as opposed to historical trend of cost increasing in 4Q. With the results, the bank also announced a dividend of PkR2/sh (c. CY19 payout: PkR4/sh). On a quarterly basis, the bank reported 4QCY19 earnings of PkR1.87/sh, flat QoQ where capital gains contributed 10.4% to the earnings. Provisions stood at PkR1.02bn, flat QoQ |
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.
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