FLASHNEWS:

IGI Securities Limited – Flash Note (October 17, 2022)

Karachi, October 17, 2022 (PPI-OT): Commercial Banks – Bank Alfalah Limited

Earnings: Bank Alfalah Limited (BAFL) announced its financial result for the third quarter of the year 2022. As per the financial result, the bank reported earnings of PKR 5.4bn (PKR 3/share) when compared to last year of PKR 3.5bn (PKR 2.0/share), an increase of +52%y/y. This takes 9mCY22 total earnings to PKR 14.1bn or PKR 7.9/share compared to last year PKR 10.5bn or PKR 5.9/share; up by +34%y/y.

Dividends/Payouts: The bank did not announce an interim cash dividend for this quarter. However, total payout during the 9MCY22 stands at PKR 2.5/share.

Operating performance: During the period under review, the bank reported net-interest income of PKR 21.9bn (up by +84%y) and non-interest income of PKR 6.6bn (up by +81%y). As a result total revenue of the bank stood at PKR 28.4bn (up by +83%y). Moreover, the bank recorded operating expenses of PKR 13.5bn (up by +45%y) that improved bank’s cost/income ratio to 48% (last year: 60%). The bank booked a provision charge of PKR 4.1bn taking 9MCY22 total charge to PKR 9.1bn which increased 5.7x compared to last year provisioning charge of PKR 1.4bn.