Author Topic: BAHL --- Bank Alhabib Ltd.  (Read 24787 times)

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Toshi

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BAHL --- Bank Alhabib Ltd.
« Reply #-1 on: December 01, 2009, 08:22:56 AM »
All about Bank Alhabib Ltd.
« Last Edit: February 09, 2012, 05:46:59 PM by M&M »

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BAHL --- Bank Alhabib Ltd.
« Reply #-1 on: December 01, 2009, 08:22:56 AM »

Toshi

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Re: BAHL --- Bank Al-habib Ltd.
« on: December 01, 2009, 08:27:53 AM »
BANK AL-HABIB: Analysis of Financial Statements CY'03-9MCY'09

OVERVIEW (December 01 2009): Bank Al-Habib was incorporated in 1991 and is headquartered in Multan. It provides various financial products and services in Pakistan. It offers consumer, commercial and Islamic banking services.

Its commercial banking services include current and deposit accounts for corporate and individual clients; foreign currency accounts; finance through loans and other credit facilities to the corporate, private, and public sectors; short-term finance of foreign trade through letters of credit and negotiation of bills of exchange; and issuance of guarantees, bid bonds, and performance bonds. The bank's consumer banking products and services comprise agricultural, auto, home, home buying, home construction, and home improvement loans.

COMPANY SNAPSHOT


Name of company         Bank Al - Habib Limited
Nature of Business        Banking
Ticker                        BAHL
Net Premium CY '07      Rs 6,247,739,000
Net Premium CY '08      Rs 7,851,991,000
Share price (avg.)       Rs 26.48
Market Capitalization   12671712720

Its Islamic banking products and services include various deposit schemes, such as current accounts, savings accounts, and term deposits; and Islamic finance and leasing services for individual/traders/industries. In addition, it offers investment products and services, which consist of PLS savings accounts and monthly profit plans, term deposit accounts, AL Habib growth certificates, and super savings accounts. Further, the bank offers online banking, safe deposit boxes, ATM cards, debit cards, tele-banking, electronic funds transfer, remittances, life insurance, and cash management services.

The bank has opened its 200th branch in Lahore on 25th June 2008. Currently, the bank has a network of 203 branches consisting of 202 branches in the major cities and towns of Pakistan and a wholesale branch in the Kingdom of Bahrain. The bank also intends to open more new branches as per its branch expansion policy. Pakistan Credit Rating Agency Limited (PACRA) has maintained the bank's long-term and short-term entity rating at AA (Double A) and A1+ (A One plus) respectively.

Recent results 3Q09: Net interest income increased by 50%, on back of rapid increase in the interest income. The pre-tax profit of the bank for the nine months period ended September 30, 2009 was Rs 3,244.4 million as compared to Rs 2,690.6 million during the corresponding period last year. PAT was recorded at Rs 611 million as compared to Rs 573 million. As against the industry trends, the provisions against NPLs, declined by 40.7%. Non-interest income however did not complement the above achievements and declined by -27.3%. The decline in the non-interest income was due to decline in dividend income and decline in income from dealing in foreign currencies.

The deposits increased by 21.5% to Rs 175.9 billion as compared to Rs 144.4 billion on December 31, 2008. The major increase was in the fixed deposits, while the remunerative savings accounts also increased. This trend is dangerous in times of sluggish credit demand, and lowering of lending rates due to decline in KIBOR. In the same period advances decreased to Rs 95.5 billion from Rs 100.2 billion, while investments increased to Rs 93.1 billion from Rs 48.2 billion. The accelerated increase in investments is in line with the whole industry, which has responded eagerly to SBP's issue of government paper. Subordinated debt has increased by 71.4%.

Banking sector update:


Our banking sector is quite resilient and has been able to withstand different types of market shocks and adverse macro economic conditions. This capability has been achieved through continuous financial reform process distinctively pursued during the past few years. Therefore, there should not be any cause of concern about the stability of the banking system in the near future. The banking sector has strong capital adequacy ratio, which is well above the minimum requirement.

CAR stood at 12.1 percent as of Jun 08, which is well above the international benchmark. Similarly, NPLs ratio and NPLs to capital ratio is also quite low and within acceptable ranges. This is mainly because banks in Pakistan focus largely on conventional lending and not into sub-prime credit lending. SBP prudential regulations prohibit banks from clean lending and investment in low quality assets.

Liquidity package worth Rs 270 billion was made public fortnight ago. Amendment in the Advances to Deposit Ratio (ADR) has enhanced the banks' existing lending capacity to Rs 550 billion as the average of advance-to-deposit ratio has dropped from 75 to 57 percent. Banks were facing huge liquidity shortage for the last two months due to tremendous withdrawals of cash from banks in the wake of default remorse, as a result of which the overnight rate reached new peak of 40-48 percent in the domestic market.

To meet the banks' liquidity requirements, the SBP has reduced the CRR up to 5 percent besides exempting the time deposits of 1 year tenor and above from Statutory Liquidity Requirements (SLR). The current mover of central bank would inject a liquidity of Rs 30 billion in the banking system easing them to meet their customers' demand, while cumulatively with SBP's current and previous moves will have released liquidity of Rs 270 billion in the banking system.

Analysis of financial performance:

The profitability of BAHL has declined over the current year CY08. The profit after tax rose by 15.90% while assets, deposits and equity rose by 25.46%, 25.71% and 38.81% respectively. In CY08, the interest income was the major contributor to the profits and showed an increase of 32.54% while non-interest income grew by 12.56%. Net mark-up interest income has increased by 57.88%. Bank Al-Habib's return on assets is below the industry averages reflecting lower profitability as compared to industry. Similarly, company's ROE has been way above the industry averages showing its leveraged position. This is clearly reflected in a very high deposit to equity multiple of 12.36 percent as compared to industry's 8.21 percent in the CY08.

The bank's performing advances were higher this time. Though the yield on the earning assets grew, this was offset by a higher cost of funding. In spite of that and the decline in banking sector spread, the bank's profitability picture remained positive, indicating that the bank has prudent policies in place for handling its deposits, advances and investments.

Bank's EPS has slightly increased from Rs 4.59 in CY07 to Rs 4.95 in CY08. The earning assets of the bank have been growing all throughout. Higher deposits are being streamed into greater advances, lending, and investments especially. Bank's investments constituted about 32 percent of earning assets in the CY08 as compared to 30 percent in the FY07. This is mainly due to significant investment made in different government securities and term finance certificates in FY08.

Composition of the earning assets shows greater investments than advances, which shows that the trend from CY07 has continued. We expect this trend to increase further considering the higher NPLs to advances ratio and the worsening state of country's economy. Moreover, increasing investments in low-risky assets mean lower credit risk and better quality of assets. The interest rate spread of the banking industry showed a declining trend in the CY08. Despite this trend, the performance of the bank showed more than satisfactory results.

The liquidity profile of the bank shows comforting trend. The liquidity position of the bank has improved in general over the period under study. Bank's earning assets to total assets have grown at more than industry averages. Similarly, bank's advance to deposits ratio has been declining marginally in the period under study.

The ADR of the bank has shown a decline over this period because of heavy growth in bank's deposits, outpacing the otherwise moderate advances growth rate resulting from a relatively prudent loans portfolio in 2008. The deposit base rose in CY08 due to SBP's regulation to offer higher return on deposits with the intention to reduce banking sector spreads and provide investors with a fair rate of return.

The debt management of the bank shows a highly leveraged position as compared to industry averages. In CY08, the bank's debt to equity and debt to total assets ratio have declined but are still above the industry averages in the period understudy. This indicates that the bank is a highly leveraged institution with only a small portion of its assets constituting equity.

Though the bank has made efforts to increase its equity to meet the SBP's minimum capital requirements, a large proportion of its assets remain debt financed. Such high debt levels may expose the bank to excessive credit, interest and other risks. Moreover, maintaining such high levels of deposits against equity is also exposed to the danger of the bank experiencing a run on its deposits. Increasing the equity portion of the assets would provide a cushion against all such risks.

The solvency ratios of the bank show somewhat similar trend. This trend may be attributed to the efforts of the bank in increasing its equity and its earning assets. The equity to assets and equity to deposits profiles have remained rather constant over the last four years. Earning assets to deposits profile has shown a decline in CY08. The bank needs to increase its equity base and investments in government securities and other sectors of the economy.

The non-performing loans of the bank have somewhat remained constant for the last four years. However, NPLs to advances have shown a declining trend especially after 2006. This is mainly due to greater advances as compared to NPLs, which is a welcoming trend as higher return may be generated from greater advances.

Bank's NPLs/advances ratio and provision for NPLs have been lower than the industry averages. Lower provision on one hand may leave the bank with greater amount of assets for more productive uses but the bank should increase its provisions until the declining trend in the NPLs becomes more visible. The NPL provisioning in CY'08 was Rs 1.17 billion, which is much higher than Rs 93 million in CY07.

The company paid out dividend of Rs 1.14 per share in CY08 (CY07: Rs 0.81). The dividend cover has declined to 4.36 and dividend yield has increased to 4.30%. This shows that the investor expectations have improved since CY05.

Future outlook:

SBP further loosened its monetary policy as it slashed the discount rate by 50 bps to 12.5%. The policy rate cut has been lower than expected. However, a lower discount rate is expected to reduce the banking spread and affect the interest income earned by banks. Easing monetary policy and favourable liquidity position has reduced KIBOR and six months repo rate since April 2009. The demand for private sector credit has been declining sharply and a decline in the policy rate of 100 bps to 13% earlier in CY09 could not boost this dwindling demand.

This was because slow economic activity country hampered credit off-take and the banks also took a stance of risk aversion in the face of increasing NPLs (which rose by Rs 19 billion during 2Q09 and has reached Rs 398 billion by the end of June 2009. Banks were more attracted towards government paper. The demand that was emanating was from the PSE mostly.

FSV benefit up to 40% has been allowed by SBP. This would give benefit to the banks in terms of lowering the provisioning requirements and thus bolstering the bottom line.

SBP has also introduced a reverse repo rate at 9.5 percent to manage liquidity and stabilise the interest rate in the overnight money market. The SBP policy rate will act as a 'ceiling' while the repo rate on the new overnight deposit facility (300 bps below the SBP policy rate) will provide a binding 'floor'. This new framework will improve liquidity management and make money market operations more transparent. Liquidity position in the market has been favourable and thus the total deposits with the banks expanded by Rs 295.3 billion during the 2Q09. The Budget 2009-10 is expected to have a neutral impact on the banking sector.
COURTESY: Economics and Finance Department, Institute of Business Administration

Offline Farzooq

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #1 on: February 25, 2010, 03:07:09 PM »
eps 4.68 20% bonus
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Offline kSE001

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #2 on: March 29, 2010, 05:52:39 PM »
BOOK CLOSURE TO 25/03/2010
FINANCIAL RESULT FOR THE YEAR ENDED 31/12/2009
DIVIDEND = 20%
BONUS ISSUE = 20%
BOOK CLOSURE FROM 15/03/2010

Today dividend@20% credited to my bank account but no bonus shares added to my holding/portfolio at kasb can any one  explain when bonus will be credited as book closure ended on 25 ????   :skeptic:

Offline kSE001

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #3 on: March 29, 2010, 05:55:36 PM »
Farzooq bhai m waiting your positive response..... :thanks:

Offline Farzooq

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #4 on: March 30, 2010, 09:28:28 AM »
BOOK CLOSURE TO 25/03/2010
FINANCIAL RESULT FOR THE YEAR ENDED 31/12/2009
DIVIDEND = 20%
BONUS ISSUE = 20%
BOOK CLOSURE FROM 15/03/2010

Today dividend@20% credited to my bank account but no bonus shares added to my holding/portfolio at kasb can any one  explain when bonus will be credited as book closure ended on 25 ????   :skeptic:

bonus will be in your account within a week
better call and confirm from your broker

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Offline kSE001

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #5 on: March 30, 2010, 10:49:47 AM »
Thanks hope it will be. :biggthumpup:

Offline kSE001

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #6 on: March 31, 2010, 04:06:31 PM »
Got it   :busted_blue: :busted_blue: :busted_blue: :busted_blue: :busted_blue: :busted_blue:

Offline Farzooq

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #7 on: May 20, 2010, 09:21:57 AM »
Bank: BANK AL-HABIB LIMITED - Analysis of Financial Statements Financial Year 2004 - 2001 Q 2010
OVERVIEW (May 20 2010): Bank Al-Habib Limited provides various financial products and services in Pakistan. It offers consumer, commercial and Islamic banking services.

Its commercial banking services include current and deposit accounts for corporate and individual clients; foreign currency accounts; finance through loans and other credit facilities to the corporate, private, and public sectors; short-term finance of foreign trade through letters of credit and negotiation of bills of exchange; and issuance of guarantees, bid bonds, and performance bonds. Its commercial banking services also include acceptance and placement of funds in the interbank market; purchase and sale of foreign currencies; trade information and research; remittances and transfer of funds; purchase and sale of government securities; Sui gas bills collection; and MCB rupee traveller cheque services.

Bank Al-Habib's consumer banking products and services comprise agriculture, auto, home buying, home construction, and home improvement loans. Its Islamic banking products and services include various deposit schemes, such as current accounts, savings accounts, and term deposits; and Islamic finance and leasing services for individuals, trades and industries. It also offers investment products and services, which consist PLS savings accounts and monthly profit plans, term deposit accounts, AL Habib growth certificates, and super savings accounts. Further, the bank offers online banking, safe deposit boxes, ATM cards, debit cards, telebanking, electronic funds transfer, remittances, life insurance, and cash management services.

=============================================
COMPANY SNAPSHOT
=============================================
NAME OF COMPANY         BANK AL-HABIB LIMITED
---------------------------------------------
Nature of Business                    Banking
Ticker                                   BAHL
Market Capitalization             21598847086
=============================================

During the year, the bank opened 30 branches, bringing the network of branches to 255, which include six Islamic banking branches and one overseas branch in the Kingdom of Bahrain. As before, the bank will continue to expand its branch network in various parts of the country.

==========================================================
INDUSTRY COMPARISON
==========================================================
                              BAHL       Industry Averages
==========================================================
                        2008      2009     2008       2009
==========================================================
Profits After Tax       7.45%    20.69%   -4.37%    26.07%
Advances               26.47%     5.76%   22.89%     4.75%
Deposits               25.71%    31.13%   12.98%    10.03%
Investments            35.97%   131.45%   -8.69%    33.53%
Net Interest Income    32.54%    45.04%   15.98%    19.69%
Non Interest Income    12.56%   -24.01%   75.05%    21.12%
Return on Assets      -13.57%    -9.96%  -13.72%     4.02%
==========================================================
INDUSTRY COMPARISON

As seen from the table, the growth rates for almost all of the components have been higher than the industry averages for FY08. Same trend was followed for most of the components in FY09.

RECENT PERFORMANCE (1Q10)

The performance of the bank for first quarter ended March 31, 2010 showed an improvement. The deposits increased to Rs 215.1 billion as compared to Rs 189.3 billion at the end of FY09. Advances increased to Rs 107.5 billion from Rs 105.9 billion and investments rose to Rs 112.3 billion from Rs 111 billion. Foreign trade business volume also showed a rising trend.

Net mark-up income increased by 3.7%, to Rs 2,350 million as compared to Rs 2,266 million in 1Q09. However, because of lower provisions against the NPLs, net interest income after provisions increased by 20%. Profit after tax for the quarter ended March 31, 2010 was Rs 880.6 million as compared to Rs 677.8 million during the corresponding period last year.

Net interest income increased by 3.7% amounting to Rs 2,351 million in 1Q10 as compared to Rs 2,266 million in 1Q09. Non-interest income increased to Rs 500 million from Rs 475 million. Fee, commission and brokerage income showed an increase along with dividend income. However, there was a major decline in gain from sale of securities. The bank intends to open more branches and sub-branches during the year 2010 continuing their branch expansion policy.

FINANCIAL PERFORMANCE (FINANCIAL YEAR 2004-2009)The profitability of BAHL has slightly declined over the current year FY09. Profit after tax increased to Rs 2,856 million as against Rs 2,425 million last year, showing an increase of 21%. Assets, deposits and equity rose by 40.87%, 31.13% and 20.78% respectively. In FY09, the interest income was the major contributor to the profits and showed an increase of 45.04% while non-interest income decreased by 24%. Net mark-up interest income has increased by 37.35%.

Bank Al-Habib's return on assets is below the industry averages reflecting lower profitability as compared to industry. Similarly, company's ROE has been way above the industry averages showing its leveraged position. This is clearly reflected in a very high deposit to equity multiple of 15.57 as compared to industry's 8.75 in FY09.

The bank's performing advances were higher this time. Though the yield on the earning assets grew, this was offset by a higher cost of funding. In spite of that and decline in banking sector spread, the bank's profitability picture remained positive, indicating that the bank has prudent policies in place for handling its deposits, advances and investments.

The earning assets of the bank have been growing all throughout. Higher deposits are being streamed into greater advances, lending, and investments especially. Bank's investments constituted about 51% of earning assets in the FY09 as compared to 38% in the FY08. This is mainly due to significant investment made in different government securities and term finance certificates in FY09. Composition of the earning assets shows greater investments than advances, which shows that the trend from FY08 has continued. This trend was a result of the higher NPLs to advances ratio and the worsening state of country's economy. Moreover, increasing investments in low-risk assets mean lower credit risk and better quality of assets.

The liquidity profile of the bank shows comforting trend. The liquidity position of the bank has improved in general over the period under study. Bank's earning assets to total assets have grown at more than industry averages. Similarly, bank's Advance to deposits ratio has been declining marginally in the period under study.

The ADR of the bank has shown a decline over this period because of heavy growth in bank's deposits, outpacing the otherwise moderate advances growth rate resulting from a relatively prudent loans portfolio in 2009. The debt management of the bank shows a highly leveraged position as compared to industry averages. In FY08, the Bank's Debt to equity and Debt to total assets ratio have declined but are still above the industry averages in the period understudy.

This indicates that the bank is a highly leveraged institution with only a small portion of its assets constituting equity. Though the bank has made efforts to increase its equity to meet the SBP's minimum capital requirements, a large proportion of its assets remain debt financed. Such high debt levels may expose the bank to excessive credit, interest and other risks. Moreover, maintaining such high levels of deposits against equity is also exposed to the danger of the bank experiencing a run on its deposits. Increasing the equity portion of the assets would provide a cushion against all such risks.

The solvency ratios of the bank show somewhat similar trend. This trend may be attributed to the efforts of the bank in increasing its equity and its earning assets. The equity to assets and equity to deposits profiles have remained rather constant over the last four years. Earning assets to deposits profile showed a decline in FY08 and an increase in FY09. The bank needs to further increase its equity base and investments in government securities and other sectors of the economy.

The non-performing loans of the bank have sharply increased from Rs 862.55 million to Rs 2,067.66 million in FY09. NPLs to advances have shown a declining trend after FY04. It then increased in FY09 more than the level of FY04. Bank's NPLs/advances ratio has been lower than the industry averages. Provisions to NPLs declined from 0.64 to 0.57 in FY09.

The bank paid dividend of Rs 2.00 per share in FY09 (FY08: Rs 1.25). The dividend cover has declined to 2.34 and dividend yield has increased to 6.11%. Generally, the investor expectations have improved since FY05.

FUTURE OUTLOOKAfter the global financial crisis of 2008 that affected the domestic markets as well, the prospects of normalcy have improved in the recent months. Nevertheless, market conditions remain vulnerable. As before, the bank will continue to strive for growth and progress.

COURTESY: Economics and Finance Department, Institute of Business Administration, Karachi
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Offline Farzooq

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #8 on: November 21, 2010, 03:17:01 PM »
Bank AL-Habib Limited 12 October 2010
01:52 PM
(PKT +5:00GMT) EPS = Rs 3.10 PER SHARE
FINANCIAL RESULT FOR THE THIRD QUARTER ENDED 30/09/2010
PROFIT/LOSS BEFORE TAXATION RS. IN MILLION 3,829.131
PROFIT/LOSS AFTER TAXATION RS. IN MILLION 2,271.594
Bank AL-Habib Limited 09 August 2010
01:23 PM
(PKT +5:00GMT) EPS = Rs 2.32 PER SHARE
FINANCIAL RESULT FOR THE HALF YEAR ENDED 30/06/2010
PROFIT/LOSS BEFORE TAXATION RS. IN MILLION 2,745.986
PROFIT/LOSS AFTER TAXATION RS. IN MILLION 1,695.232
Bank AL-Habib Limited 22 April 2010
02:18 PM
(PKT +5:00GMT) EPS = 1.20
PROFIT/LOSS AFTER TAXATION RS. IN MILLION 880.601
FINANCIAL RESULT FOR THE FIRST QUARTER ENDED 31/03/2010
PROFIT/LOSS BEFORE TAXATION RS. IN MILLION 1,325.529
Bank AL-Habib Limited 25 February 2010
01:47 PM
(PKT +5:00GMT) BOOK CLOSURE TO 25/03/2010
FINANCIAL RESULT FOR THE YEAR ENDED 31/12/2009
DIVIDEND = 20%
BONUS ISSUE = 20%
PROFIT/LOSS BEFORE TAXATION RS. IN MILLION 4,512.071
PROFIT/LOSS AFTER TAXATION RS. IN MILLION 2,856.294
BOOK CLOSURE FROM 15/03/2010
EPS = 4.68
ANNUAL GENERAL MEETING WILL BE HELD ON 25/03/2010
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Offline Farzooq

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #9 on: February 17, 2011, 12:45:50 PM »

eps 4.92 dps 2 bonus 20%
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Offline Farzooq

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #10 on: April 12, 2011, 01:56:18 PM »
eps 1.18
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Offline Farzooq

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #11 on: May 13, 2011, 10:36:01 AM »
Bank Al?Habib Ltd: Deposit led growth… BAHL? BUY @29
Among middle tier banks, Bank Al?Habib (BAHL) is regarded as a leader in trade finance
business. This is mainly due to sponsor’s thrust of focusing on key growth areas such as
export?import business to earn more fee income. The bank focuses on increasing branch
network in major industrial zones as well as strengthening commodity based operations in
rural zones.
Hence bank continues to put focus on deposit mobilization through expanding branch
network (bank maintains 279 branches alongwith 34 sub?branches). BAHL is now sitting at
robust deposit base of Rs 258 bn as at Mar’ 2011 (depicting noticeable 3% increase since
Dec’ 2010).

Core interest carries on upward trajectory due to rate hike
BAHL traditionally banks on old corporate relationships that include group companies in
various sectors and also big textile clients (which reflected in overall trade finance
volumes). BAHL earned core interest of Rs 8.3 bn during 1QCY11 (showing 32% increase in
the same period last year given firmed up lending rates). The overall exposure in textiles is
around 45% (entails riskiness of the overall exposure).

Trade finance continues to be main focus
BAHL thrives on foreign trade business (BAHL handled business of Rs 392.6 bn during
CY10) and hence stands tall among middle tier banks such as Askari Bank (AKBL) and
Habib Metropolitan (HMB). Income from trade finance represents nearly 18% of total
income (this trend is now seeing increasing trend of 22% reported in 1QCY11 given lower
propensity of lending base).

Lower ADR delineate BAHL cautious approach
BAHL maintains relatively lower advance to deposit ratio (ADR) of 50% vis?à?vis industry
given management’s stated focus on deposit mobilization albeit maintaining focus on fee
based operations rather than extravagantly taking exposure in project lending. However,
it also depicts overall credit appetite by the private sector given sluggish economic trend.
Provisions agst. NPL may impair expected earnings
At present BAHL has NPL’s of Rs 3 bn (Dec’ 2010) and we expect bank to put Rs 1.6 bn as
provision in CY11 thus marginally impacting on earnings.

Valuation – PBV 1.6x
BAHL can report CY11 EPS of Rs 4.82 (showing y?o?y earnings growth of 18%) as against
diluted EPS of Rs 4.10 reported in CY10. BAHL denotes CY11 PE of 6x and PBV of 1.6x
(book value Rs 17.9/sh). We maintain BUY

scsec
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Offline Dhillon

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #12 on: July 10, 2011, 05:23:43 AM »
Bank AL Habib receives bank of the year award


Staff Report

KARACHI: Bank AL Habib gets Bank of the Year 2010 (mid size banks) award from Chartered Financial Analyst Association of Pakistan (CFA). The Bank has received this award for the second consecutive year.
The CFA is a member society of the CFA Institute, USA, a global organisation of analysts, portfolio managers and finance professionals.


Offline Farzooq

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #13 on: August 09, 2011, 03:29:09 PM »
BAHL 2QCY11 preview
Bank AL Habib Ltd (BAHL) is scheduled to announce its 2QCY11 results on August
11, 2011. For the quarter we expect it to post a profit after tax of PKR 1,196m
(EPS: PKR 1.36), to bring up the first half PAT to PKR 2,231m (EPS: PKR 2.54).
We do not expect any dividends.
Growth in the top line will likely be the driving force in the rise of earnings. It will be
sufficiently supported by rise in non-interest based income, and limited growth in
interest expenses. Constraints on earnings will most probably come in the form of
higher administrative expenses and provisions for NPLs (which will rise due to
higher coverage).
We are also projecting a slightly higher tax rate (40%) due to flood tax, which out of
all our coverage banks (which have posted results) only BAFL and FABL appear to
have taken into account (MCB, ABL and UBL have taken tax rate at around 34%).

taurus
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Offline Laoo Maal

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #14 on: September 08, 2011, 11:36:55 PM »
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Offline Farzooq

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #15 on: September 08, 2011, 11:43:38 PM »
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Offline Laoo Maal

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #16 on: September 08, 2011, 11:51:27 PM »
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Offline Poker Face

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #17 on: September 19, 2011, 03:56:53 PM »
BAHL apparent leader in trade finance….P/BV – 1.5x             
 Well maintaining its ostensible leadership positions in the trade finance business; BAHL amongst all the middle tier banks kept on increasing its interest in import?export business. However, core income showed y?o?y increase of 15% in 1HCY11 but quarterly trend decreased by 15% which is preserved by the increasing margins on advances (whereas advances declined by 5.8% from the Dec10 level) following upward movement in the policy rate.
  
 Trade finance business has not only let BAHL earn a higher fee income but also enabled it to be at a prestigious position by being rewarded an award of recognition from International Finance Corporation (IFC) as the most active Global Trade Finance Program issuing bank in Middle East & North Africa for “South?South” Trade.

Piling of deposits remained a key growth prospect
BAHL continued to have its main focus on the deposit based growth by means of expanding its branch network to the total figure of 335 (comprising 285 branches, 50 sub branches) while at the same time managing networks in Dubai and Bahrain. BAHL is currently standing at sturdy deposit base of Rs.280bn as at Jun 2011 (portraying an obvious increase of 12% comparing with the Dec’2010 level and 9% q?o?q). This is expected to show a considerable augmentation as BAHL continuing with its branch expansion policy, intends to expand its branch network further during CY11.
  
Provision increased but the pace declined  
Comparing with the 1HCY10, we observed that provisions of NPL swelled by 204.4% in 1HCY11 with NPL standing at Rs 2.15bn (28% up). However, this pace is seen to slow down from 297% to 118% in 2QCY11 as a result of BAHL remaining cautious on the part of lending.

ADR continued to diminish depicting a cautious approach
Advances to deposit ratio continued its downward trend from 50% to 42% as at Jun’11 delineating management’s approach to remain cautious on the overstocking NPLs and continue increasing its deposit base. These deposits are then preferably diverted more toward investments in government papers (investments up by 32% from Dec’11 level) rather than advancing it to private sectors.
  
Valuation… P/BV – 1.5x
BAHL’s strong competitive position in the trade finance, growth in terms of good deposit base and declining level of advances as a result of cautious approach; is not only yielding some benefits with regards to increasing earning propensity but it is also reaping attractive valuations. Currently it is yielding a Price to Book (PBV) multiple of 1.5x with PE multiple of 6.2x.  Therefore, we maintain our ‘BUY’ stance.

Zain Saleem
Standard Capital Research
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Offline Farzooq

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Re: BAHL --- Bank Alhabib Ltd.
« Reply #18 on: January 11, 2012, 02:56:57 PM »
Initiating Coverage: We initiate coverage on Bank Al Habib Limited (BAHL) with a Jun?12 PT
of PKR39 based on target Justified P/BV of 1.6x. We have used sustainable growth rate of
14.1%, Cost of Equity of 20%, and Return on Equity (ROE) of 23.5%. The scrip is currently
trading at CY12E P/E and P/BV of 4.9x and 1.1x respectively and poses an upside of 35%
from current levels. BUY!
Asset base expansion and higher NIMs driving NII growth: Combination of 16% YoY
increase in earning assets and expansion of NIMs by 10bps YoY led the bank to post a YoY
growth of 32% in Net Interest Income (NII) for 9MCY11. Attractive yields on investments
compensated for the higher funding costs caused by deposit mobilization as the share of
fixed deposits increased from 36% as of Dec?10 to 40% as of Sep?11.
Exceptionally low infection ratio…: CY11 has seen a slowdown in further accretion when
NPLs have grown by only 8% since Dec?10 with infection ratio at 2.9% as of Sep?11, one of
the lowest in the domestic banking sector at present
...and slowdown in further accretion to add to the bottom line: Lately, decline (14% since
Dec?10) in advances combined with an expected growth of 2% (5 year CAGR) in the same
going forward will likely keep NPL growth subdued in the following quarters. Going forward,
with slow NPL accretion, provisioning will see a major decline of 56% during CY12 thereby,
compensating for NIM shrinkage (90bps YoY) with policy rate cut. Interestingly, loss
coverage for BAHL has historically been in excess of 100% since CY07 – it stood at 158% as
of Sep11.
Low CASA; Room for lowering funding costs: With growing term deposits (40%) and
declining CASA (50%) the bank will have greater room for reducing deposit costs with
further monetary easing.

BAHL CY11E CY12E CY13E
EPS (PKR) 4.92 5.97 6.78
DPS (PKR) 2.00 2.40 2.70
PER (x) 5.86 4.84 4.25
Div. Yield 6.9% 8.3% 9.4%
P/BV (x) 1.30 1.10 0.94
ROE 24.3% 24.6% 23.8%
Source: Elixir Research
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