AKD Securities Limited - Off the Analyst's Desk.

Karachi -- February 02, 2023 (PPI-OT)

BAFL: CY22 Result Review

Bank Alfalah Limited (BAFL) reported its CY22 earnings earlier today, posting earnings of PkR18.2bn (EPS: PkR10.24), higher by 28% as compared to CY21. The bank posted earnings of PkR4.1bn (EPS: PkR2.32) for 4QCY22, lower by 24%QoQ, while higher by 10% compared to the SPLY. The result was lower than our expectations of PkR3.08/sh for 4QCY22.

Net Interest income for 4QCY22 clocked in at PkR23.3bn for the quarter, higher by 7%QoQ and 92%YoY. The bank earned ~PkR69.7bn in interest, while expensed ~PkR46.4bn during the quarter.

Non-interest income clocked in lower than estimated at PkR4.3bn for 4QCY22, dragged down by lower FX income. To note, the FX income for the final quarter came in at PkR885mn, compared to PkR3.5bn in the earlier quarter. The lower FX income can be attributed to the slowdown in remittances during the quarter, along with generally low volumes in the FX markets.

Operating...