Elixir Securities - Faysal Bank Ltd. (FABL) Faysal Bank Limited - Recent Price Performance Remains Unjustified

Report

Elixir Securities

Syavash Pahore

EUR 4.08 For Business Accounts Only

Faysal Bank Limited - Recent Price Performance Remains Unjustified

Islamic conversion for FABL has more hurdles than benefits in the short term including reduced yields on advances due to re-profiling, inability to participate in PIBs and the lack of sufficient Ijarah Sukuk issues to channel liquidity.
Over the longer term, provided a credible Islamic brand is established, high double digit asset growth is possible, similar to Meezan Bank’s case in the past.
The stock has increased 45% 2018TD on bonus issue excitement and rumors of a potential sell off – resultantly our PT of PKR20/share (bonus-adjusted) offers 22% potential downside from last close.
If the bank is maintained as a conventional bank, however, our valuation suggests a PKR29/share valuation.

09/04/2018 4 EN

Underlying

Faysal Bank Ltd.

Faysal Bank is a bank holding company based in Pakistan. Through its subsidiaries, Co. is engaged in banking related activities.

See profile

PK0070501017 Pakistan Stock Exchange Pakistan

Provider

Elixir Securities

Elixir Securities Pakistan is a Corporate Member of the Pakistan Stock Exchange & Pakistan Mercantile Exchange and is one of the leading securities brokerage & investment banking firms in Pakistan, established since 1994. Our principal business activities include all aspects of Pakistan’s Capital Markets covering Securities Brokerage (Equities, Fixed Income and Commodities), Corporate Finance & Capital Markets Advisory (M&A, ECM, DCM) and Investment Research (Economics & Securities). We are one of the most active & aggressive Broker-Dealers in Pakistan executing trades for most of the Top 20 Global Brokers with unmatched corporate access credentials and have successfully advised and closed on some landmark ECM transactions in the history of Pakistan including the largest deal in frontier Asia (USD 1.02 billion). Our Clients include foreign and domestic financial institutions (Banks, Asset Managers, Insurance Companies, Pension Funds) corporates, HNWI’s and retail investors. This is supported by a very strong and independent research capability, which is quoted regularly in both local and international media.

Elixir Securities Pakistan is the proud recipient of many awards & recognitions including AsiaMoney’s Brokers Poll 2017, FinanceAsia’s Pakistan Best Investment Bank and Best Broker 2017, The Asset’s Best Brokerage House in Pakistan 2016, Asiamoney’s “Best Domestic Equity House 2015 in Pakistan”, The Asset Triple A Country Awards 2015 - Pakistan “Deal of the Year” and “Deal of the Year-Highly Commended”, CFA Society of Pakistan Awards for Year 2015 “Best Research Analyst (1^st Rank), CFA Society of Pakistan Awards for Year 2014 “Best Research Analyst (1^st Rank)”, “Best Trader” 2nd Runner-up (3rd Rank), The Asset Triple A Country Awards 2014’s “Best Deal in Pakistan” and Capital Finance International’s nomination for “Best Equity Research in Pakistan 2010”.

See profile

Analysts

Syavash Pahore

Other Reports on these Companies

Elixir Securities

Pakistan Banking Sector - 1Q2018 Earnings to Decline Due To Lower Capital Gains

1Q2018 Earnings are expected to decline by 14.6%YoY. Lower capital gains and the low interest rate environment are expected to keep revenues on a slightly declining trend. Total revenues are expected to remain flat as a result of 6.7%YoY growth in Net Interest Income (NII) which is expected to be set off by 16.5% decline in Non Funded Income (NFI). The decline in NFI is due to 76.3%YoY expected decline in capital gains. HMB is projected to post a YoY growth of 4% while FABL is expected to declare the largest YoY decline of 29% in its 1Q2018 EPS.

EUR 4.08

April 12, 2018 April 12, 2018 5 EN

Elixir Securities

Pakistan Banking Sector - Life After PIB Bonanza (Detailed Report)

Initiating Coverage on ABL, BAHL, FABL and HMB: We expand our Banking Universe by initiating coverage on ABL, BAHL, FABL and HMB with Dec-18 PT’s of PKR90/share, PKR75/share, PKR25/share and PKR30/share respectively. Overall we maintain a Marketweight stance on the sector as we eye NIM compression over the medium term, however we highlight select plays that 1) stand to gain the most and fastest amidst expected interest rate cycle reversal next year, 2) have longer term and higher yield PIB portfolios, 3) strong asset quality, and 4) have undergone unwarranted price declines. In this backdrop, ...

EUR 20.34

November 16, 2017 November 16, 2017 41 EN

Open End Mutual Funds Industry - Ad Oculos

Assets under Management (AUMs) for the Open End Mutual Fund Industry Increased by 4.6% MoM to PKR569bn as at Jan-19, driven by growth in Equity Funds due to equity market performance AUM’s for Conventional / Shariah Compliant Equity Funds stood at PKR137bn / PKR70bn, up 8.1%/10.5% MoM. Liquidity position (including investment in T-Bills) for both the categories combined declined from PKR15.2bn (8% of AUM’s) to PKR14.0bn (7% of AUM’s) Looking at the stock wise exposure, Conventional Equity Funds were most concentrated in Bank Alfalah (BAFL), United Bank (UBL) and Habib Bank Limited (HBL) ...

EUR 4.57

February 13, 2019 February 13, 2019 13 EN

Elixir Research

Elixir Research

Pakistan Equity Market: Weekly Review - Index Closes Above 41k Mark on Foreign Buying

KSE100 Index continued to rally into 5th straight week led by foreign buying interest, particularly in Banking stocks. The Index gained 848pts (2.1%) during the week, taking 2019TD return to 10.9%. Market activity also remained elevated during the week with average daily traded volumes inching up by 3.8%WoW to 175mn shares. The index was mainly driven by Banks, Oil Marketing Companies (OMCs), Automobile Assemblers and Oil Exploration & Production Companies (E&Ps) contributing respective gains of 234pts (28%), 129pts (15%), 83pts (10%) and 74pts (9%) in the Benchmark Index. Banks remained i...

EUR 4.57

February 4, 2019 February 4, 2019 10 EN

Mohammad Zain-ul-Abedin

Mohammad Zain-ul-Abedin

Elixir Grid - KSE100: Make or Break?

Bourse extended its rise for the fifth consecutive week with benchmark KSE100 Index closing on a buoyant note amid expanding turnover at 41,113 level. Overcoming multiple barriers i.e. daily 144 EMA (40,314) followed by a descending resistance at 40,700 level in the outgoing week further strengthened the near-term structure and pushed the Index higher to set an intra-day high of 41,211 on last Friday; however it settled marginally below its daily 233 EMA at 41,127 mark....

EUR 4.57

February 4, 2019 February 4, 2019 2 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Faysal Bank Limited - Recent Price Performance Remains Unjustified

Pakistan Banking Sector - 1Q2018 Earnings to Decline Due To Lower Capital Gains

Pakistan Banking Sector - Life After PIB Bonanza (Detailed Report)

Open End Mutual Funds Industry - Ad Oculos

Pakistan Equity Market: Weekly Review - Index Closes Above 41k Mark on Foreign Buying

Elixir Grid - KSE100: Make or Break?

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe