IGI Securities Limited – Day Break

Karachi, November 16, 2018 (PPI-OT): Commercial Banks – AKBL: Uniquely Positioned for NIM Expansion As Careful Assets Growth Shine Through; Strong Buy Maintained

We are increasing our 2018e EPS to PKR 4.0/share and raising our 2019-21F earnings estimates by an average ~8%. Our earnings growth for next 3yrs comes at +9%.

AKBL shares currently trade at P/e 4.8x 2019 EPS and P/b 0.8x. We have rolled our price target from Dec-18 to Dec-19, and raised our target price to now PKR 37/share, which assumes shares trade close to P/e 8.0x with our 2019 EPS of PKR 5.3. At current price of PKR 26/share AKBL offers a +45% upside.