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Best Local Brokerage House

Brokers Poll 2011, 2012 & 2013

PAKISTAN BANKING SECTOR


Outlook & Review

October 2014

Zeeshan AfzalAC
Zeeshan.afzal@topline.com.pk

Topline Securities, Pakistan

Table of Content
Outlook
Banks earnings to grow at 3-year CAGR of 22%

---------------------------------------------------------------

Topline Banking Universe: Top Picks (UBL, BAFL, HBL, BAHL)

---------------------------------------------------------------

Other attractive mid-cap banking stocks (AKBL, HMB, FABL)

---------------------------------------------------------------

Banking stocks: Key Numbers

---------------------------------------------------------------

Review
Deposit growth 14.6% a year in last 5 years

---------------------------------------------------------------

10

Advances g
growth 5.0% a y
year in last 5 y
years

---------------------------------------------------------------

14

Investments growth 32% a year in last 5 years

---------------------------------------------------------------

16

NPLs declining due to better business environment

---------------------------------------------------------------

20

Higher coverage resulting in improved asset quality

---------------------------------------------------------------

22

NIMs to improve on higher asset return

---------------------------------------------------------------

24

Non-interest Income also rising

---------------------------------------------------------------

26

Cost to Income ratio declining

---------------------------------------------------------------

28

Pakistan banks profits rose at 5-year


5 year CAGR of 21%

---------------------------------------------------------------

29

Listed banks ROE increased to 20.3%

---------------------------------------------------------------

30

Disclaimer

---------------------------------------------------------------

32

October2014

Banks earnings to grow at 3-year CAGR of 22%

With clear
l
signs
i
off economic
i recovery and
d reviving
i i business
b i
activities
ti iti in
i Pakistan,
P ki t
l l banks
local
b k will
ill be
b the
th
key beneficiaries in coming years.

As credit appetite has started to grow, local banks are all prepared to finance power, textile, telecom,
consumer, construction and transport/communication sectors when credit penetration in Pakistan is at
multi year low of 19% of GDP.

With rising investors confidence in the new business friendly Govt., banks have started to accumulate highyielding Govt. papers at a time when Govt. is restructuring its debt to long duration under IMF instructions.
This will further support Net Interest Margins (NIM).

Reducing Non-Performing Loans (NPLs) coupled with adequate Capital Adequacy Ratio (CAR) will further
help banks overall profit growth.

In addition, evolution of branchless and Islamic banking will improve banks outreach and volumes, which
in turn will increase overall banking sector profits.

In a country with population of 188mn, only 35mn bank accounts are there in Pakistan. Thus branchless
banking provides huge potential to tap new accounts and increase deposit base.

October2014

Banks earnings to grow at 3-year CAGR of 22% (Contd.)

IIn nextt 3 years, Topline


T li Banking
B ki Universe
U i
d
deposits
it are estimated
ti t d to
t grow att CAGR at12.9%
t12 9% compared
d to
t
15.6% in last 3 years. Similarly, we estimate advances growth of 13.5% CAGR in next 3 years vs. 7.9% in
last 3 years.

We expect contribution from NII (Net Interest Income) and Non-Interest Income in the total earning
growth. In next 3 years (2014
(2014-16),
16), NII of Topline banking universe is likely to grow at 14.5% CAGR vs.
2.8% during 2011-13. Similarly, Non-interest Income growth is estimated to remain at 13.5% CAGR during
2014-16 vs. 17.4% in 2011-13.

Due to rising branch network in an attempts to improve service qualities, banks are likely to spend more. We
expect, Topline Universe Cost to Income ratio to remain at average 49.0% in next 3 years vs. 47.1% during
2011-13.

Asset quality would also improve in coming years. we expect Net Infection to drop to 1.6% by 2016 from
current 2.5%.

Due to improved banking fundamentals,


fundamentals we expect earnings of Topline Universe banks to grow by 21.9%
21 9% in
next 3 years (2014-16) compared to 5.5% growth in last 3 years (2011-13) and 8.1% CAGR in last 5 years.
In 2014, we expect earnings of Topline Banking Universe to grow by 35%.

At present, Topline Banking Universe is trading at 2014E PE of 9.8x and 2015F PE of 8.4x. In terms of PBV,
2014E ratio is 1.7x while 2015F ratio is 1.6x. Topline Banking Universe is providing average ROE of 18.6%
in next 3 years.

UBL, BAFL, HBL and BAHL are amongst our top picks in banking universe. Few mid cap banks like AKBL,
HMB and FABL are also worth looking.

October2014

Topline Banking Universe: Top Picks


United Bank (UBL)

UBL is Pakistans third largest commercial bank having 10% market share in total assets, deposits and
advances of commercial banks in Pakistan.

W extensive
With
v b
branch network
w
of 1,300,
,
, UBLL is a retail,, SME
ME and corporate
p
bank w
b
with significant
g
stakes
abroad. Our investment thesis is based on better macroeconomic fundamentals, improving credit appetite,
banks shift to high-yielding Govt. papers and declining bad loans.

High Non-Interest Income and diversification benefit owing to UBLs presence in Middle East add charm to
the bank.

UBL is trading at 2014E PE of 9.6x and PBV of 1.9x. At current price, UBL offers 29% return to our target
price including 6.5% dividend yield. Comparing todays valuation with high growth period (2006-08)
average PE of 13.2x and PBV of 3.0x, the scrip trades at 30-35% discount.

Bank
a
Alfalah
a a (BAFL)
(
)

The bank is operating with branch network of 580 and asset size of Rs673bn (US$6.6bn) and is the 6th
largest bank in Pakistan in terms of assets.

The stock is trading at an attractive 2014E PE of 7.1x and PBV of 1.1x. This is 50-60% discount to PE of
14 4x and PBV of 1.9x
14.4x
1 9x during 2006
2006-07
07. Bank also offers decent dividend yield of 7.9%.
7 9% The bank is likely to
provide 27% total return. Recent announcement of IFC for 15% equity injection at Rs28 per share will
eventually increase banks capital base and CAR.

BAFLs Islamic assets stand at Rs98.1bn which is 14.5% of BAFL total assets and 9.0% of Islamic banking
industry assets. Though the growth is high and cost of deposits is low, industry is facing low yields/margins
due to lack of investment avenues. However, we see rising investment avenues and growing market in the
future which would result in continued growth and better returns.

October2014

Topline Banking Universe: Top Picks (Contd.)


Habib Bank (HBL)

HBL is Pakistans largest bank (asset size US$17.0bn), having 16.6% market share in total assets and total
deposits of the banking sector. With 1,594 branches, HBL has strong footprints in all banking segments
including retail, corporate and investment banking in addition to SME and Agri financing in Pakistan.

Largest book size, strong penetration in the country, high asset quality and competent management are the
distinguishing features of HBL while expected additional float from Govt. would improve price discovery
and liquidity in the stock.

The scrip is trading at 2014E PE of 9.7x and 2015F PE of 8.6x with PBV of 1.9x for 2014E and 1.7x for
2015F. The stock offers 27% return from current levels inclusive of dividend yield (5%).

Bank Al Habib (BAHL)

BAHL is Pakistans 7th largest bank with rising branch network.


network The bank is providing one of the best ROEs
(Return on Equity) of more than 21% (listed banks average ROE 16.7%) with excellent asset quality.

Rising branch network and one of the best asset quality in Pakistan banks are other positive characteristics
of the bank.

The scrip is trading at 2014E PE of 8.2x and 2015F PE of 6.7x with PBV of 1.7x for 2014E and 1.5x for
2015F. During high growth period of 2004-08, BAHL traded at average PBV of 2.7x. Thus, the stock offers
26% upside from current levels inclusive of dividend yield (5.9%).

October2014

Other attractive mid-cap banking stocks

W also
We
l like
lik AKBL,
AKBL FABL and
d HMB amongstt medium/small
di /
ll banks
b k with
ith better
b tt future
f t
growth
th and
d low
l PBV.
PBV

Last years book cleaning exercise by new management of AKBL is boding well for the bank in shape of
higher profits and improved asset quality. AKBL is trading at cheap 2014E PBV of 1.1x with impressive ROE
of 22.6%.

HMB is another potential stock which can outperform. The bank, which is better in terms of asset quality
and providing ROE of 16.0%, is trading at 2014E PBV of 1.1x

We expect FABL to post 2014 EPS of Rs2.0, up 12%. Earnings are likely to increase to Rs2.7 in 2015 due to
24% NII growth. The bank is trading at 2015F PBV of 0.7x.

October2014

Banking stocks: Key Numbers


Pakistan Listed Banks: Key
y Numbers
Symbol Bank Name
ABL
AKBL

Allied Bank
Askari Bank

Share Price
Sep 25, 2014
(Rs)
108.8
21.0

Market
Market 3-MonthAvg
EPS
EPS
Cap.
Cap.
Volume
2014E Growth
(Rs mn) (US$ mn) (US$ 000)
124,595
1,214
161 13.8
7%
26,453
258
610
3.8
NM

PE

PBV D/Y (E)

ROE

ROA

7.9
5.5

1.6
1.1

4.7%
9.5%

22.1%
22.0%

2.2%
1.2%

BAFL

Bank Alfalah

28.5

,
38,478

375

690

4.0

15%

7.1

1.1

8.1%

16.3%

0.9%

BAHL
BIPL

Bank Al Habib
Bank Islami

45.0
9.9

49,970
5,232

487
51

223
8

5.5
0.6

18%
77%

8.2
15.6

1.7
0.8

4.8%
0.0%

22.3%
5.2%

1.3%
0.4%

BOK

Bank of Khyber

8.5

8,503

83

1.4

21%

6.1

0.6

0.0%

10.5%

1.3%

BOP

Bank of Punjab

7.9

12,208

119

405

1.8

43%

4.4

0.8

0.0%

18.5%

0.8%

FABL
HBL

Faysal Bank
Habib Bank

17.8
200.1
200
1

18,570
293,517
293
517

181
2,861
2
861

484
576

2.0
20.7
20
7

12%
33%

8.9
97
9.7

0.8
1.9
1
9

0.0%
5.3%
5
3%

9.0%
20.3%
20
3%

0.6%
1 8%
1.8%

HMB

Habib Metropolitan Bank

30.4

31,896

311

80

4.4

32%

6.9

1.1

8.6%

16.0%

1.5%

JSBL
KASBB

JS Bank
KASB Bank

5.3
1.5

5,673
2,946

55
29

73
3

0.9
0.0

99%
NM

6.0
58.9

0.5
1.7

0.0%
0.0%

8.0%
2.9%

0.8%
0.1%

MCB

MCB Bank

280.2

311,860

3,040

681

23.2

18%

12.1

2.6

5.9%

21.7%

3.1%

MEBL
NBP

Meezan Bank
National Bank Of Pakistan

41.3
57.8

41,433
123,034

404
1,199

80
1,225

4.7
7.4

20%
197%
%

8.8
7.9

1.9 4.3% 23.2%


0.8 10.3%
% 9.6%
%

1.4%
1.1%
%

NIB

NIB Bank

2.0

20,606

201

25

0.1

NM

18.7

1.2

6.8%

0.6%

8.0
23.5

8,036
91,137

78
888

28
5

0.3
2.7

227%
0%

29.2
8.7

0.8 0.0% 2.7%


1.6 10.2% 18.3%

0.7%
2.6%

SBL
Samba Bank
SCBPL Standard Chartered Bank

0.0%

SILK

Silk Bank

2.2

5,851

57

14

0.0

NM

47.4

0.9

0.0%

1.8%

0.1%

SMBL
SNBL

Summit Bank
Soneri Bank

3.0
12.5

3,266
13,814

32
135

33
13

(1.2)
1.3

NM
41%

NM
9.5

1.8
0.9

0.0%
0.0%

NM
10.4%

NM
0.9%

UBL

United Bank

184.9

226,314

2,206

3,011

19.3

22%

9.6

1.9

6.6%

20.4%

2.2%

1,463,392

14,263

9.1

1.5

6.1%

17.1%

1.7%

Total Listed Banks


Source: Com pany Accounts, Topline Research

October2014

Prices as on Sep 25, 2014

Banking stocks: Key Numbers (Contd.)


Pakistan Listed Banks: Key
y Numbers June 2014
Symbol

Assets
(Rs mn)

Deposits
(Rs mn)

Equity
(Rs mn)

Total
Branches

CASA*

NIMs

Advances
Net NPLs Capital
Provision
NPLs to
to Net Adequacy
to
to NPLs
Loans
Deposits
Loans
Ratio
44.2%
93.2%
0.5%
18.0%
6.4%

Cost to
Income

ABL

808,445

645,863

71,561

962

73.9%

4.6%

AKBL
BAFL

407,875
672,532
,

344,823
555,667
,

20,647
31,705
,

281
580

78.4%
64.0%

3.7%
4.2%

50.0%
49.7%

87.3%
68.2%

2.2%
1.9%

11.9%
12.1%

16.0%
6.3%

64.3%
67.2%

BAHL
BIPL

488,491
97,111

416,992
85,466

27,837
6,892

334
201

76.9%
58.9%

4.3%
4.4%

38.5%
40.8%

84.7%
52.1%

-1.2%
1.2%

14.6%
15.7%

2.6%
4.5%

54.5%
87.1%

BOK
BOP

108,192
376,027

84,349
332,815

13,297
14,754

101
334

59.1%
62.2%

4.3%
2.4%

31.9%
48.9%

69.6%
43.6%

4.6%
19.5%

24.0%
9.0%

13.9%
30.0%

52.5%
71.1%

FABL
HBL

345,751
1,741,745
1
741 745

271,944
1,450,228
1
450 228

21,727
148,577
148
577

269
1,594
1
594

63.5%
69.4%
69
4%

4.9%
5.1%
5
1%

64.6%
39.8%
39
8%

76.8%
67.4%
67
4%

3.6%
2.5%
2
5%

11.3%
15.4%
15
4%

14.7%
8 4%
8.4%

76.1%
46 4%
46.4%

HMB
JSBL

377,497
127,135

277,142
94,208

27,999
13,484

174
211

56.9%
65.8%

3.1%
3.9%

42.8%
45.2%

77.8%
57.5%

2.1%
2.6%

16.3%
24.3%

13.4%
6.0%

46.4%
70.7%

KASBB

40.3%

71,175

64,328

1,684

105

81.5%

4.2%

36.9%

77.5%

10.4%

-1.9%

34.1%

94.1%

874,961
362,355

685,750
317,724

120,214
21,475

1,218
357

89.2%
70.0%

6.3%
5.6%

41.5%
36.0%

83.2%
93.8%

1.1%
-0.8%

22.2%
12.5%

7.3%
4.1%

34.3%
58.4%

1,447,966
1
44 966
182,276

1,139,535
1
139 3
112,103

163,317
163
31
16,604

1,367
1
36
171

63.7%
63
%
67.3%

4.3%
4
3%
2.7%

54.7%
4 %
84.2%

81.4%
81
4%
78.8%

2.8%
2
8%
6.3%

16.1%
16
1%
12.0%

15.4%
1
4%
24.2%

51.8%
1 8%
87.3%

SBL
SCBPL

49,697
428,069

30,117
312,739

10,647
56,444

28
116

53.2%
92.6%

4.1%
6.6%

65.6%
50.5%

98.0%
87.7%

0.2%
1.5%

42.4%
16.9%

10.3%
13.4%

79.0%
46.1%

SILK
SMBL

97,170
136,652

78,949
108,452

6,366
4,788

88
187

56.5%
71.9%

4.8%
2.7%

74.1%
52.5%

58.7%
70.8%

5.6%
8.3%

7.7%
4.4%

14.0%
23.8%

94.3%
113.3%

SNBL
UBL

193,852
1,103,687

155,713
918,210

13,905
112,584

238
1,300

70.6%
67.6%

3.9%
5.4%

60.6%
47.7%

70.5%
83.9%

3.4%
1.5%

11.0%
13.3%

12.3%
11.0%

63.0%
45.6%

Total

10,498,660

8,483,116

926,510

10,216

70.5%

4.6%

47.1%

75.4%

2.8%

14.9%

12.0%

53.2%

MCB
MEBL
NBP
NIB

Source: Com pany Accounts, Topline Research


Figures are as on June 30, 2014

October2014

**Low Cost Current Accounts & Savings Accounts to Total Deposits

Deposit growth 14.6% a year in last 5 years

IIn last
l t 5 years (2009-13),
(2009 13) Pakistan
P ki t commercial
i l banks
b k deposits
d
it increased
i
d att 14.6%
14 6% CAGR while
hil 10 year
(2004-13) deposit CAGR stood at 15.4%. There are total 34 commercial banks in Pakistan (including
public, private and foreign banks), out of which 22 are listed.

In addition to monetary expansion, new banks, rising branch network and improving banking penetration
are key factors behind the deposit growth.

In June 2014, banks deposit growth remained at 13% YoY which is slightly lower than recent growth trend.

The decline in the growth trend is mainly linked to slow growth in money supply and revaluation of foreign
currency deposits after PKR appreciation.

Pakistan Schedule Banks Deposits


10,000

20%

Deposits Rs bn (LHS)

9,000

Growth YoY (RHS)


16%

8,000
7,000
6,000

12%

5,000
8%

4,000
3,000
2,000

4%

1,000

Jun-14

Dec-13

Dec-12

Dec-11

Dec-10

Dec-09

Dec-08

0%
Dec-07

Source: SBP

October2014

10

Pakistan listed banks: June-14 deposits growth at 13%

Pakistan Listed banks Deposits


p
Amongstt large
A
l
li t d banks,
listed
b k BAFL and
d HBL posted
t d
Deposit
handsome deposit growth of 15.9% and 15.2%, Bank Name
Growth
(Rs
bn)
respectively, in the 12-months ended June 2014
646
13.3%
while ABL (13.3%), UBL (13.1%) and MCB ABL
AKBL
345
17.6%
(12.4%) also posted decent growth trend.
BAHL
417
14.3%
In smaller banks, deposit mobilization activities BAFL
556
15.9%
resulted in handsome deposit growth for SMBL BIPL
85
22.6%
(39.1%), JSBL (32.9%), HMB (26.7%), NIB BOK
84
22.6%
(25.3%), BOK (22.6%), BIPL (22.6%) and MEBL
BOP
333
12.5%
(22.0%) in the 12 months ended June 2014.
FABL
272
12 0%
12.0%
1,450
15.2%
On the other side, deposit growth remained slow HBL
277
26.9%
for KASBB (4.7%), SCBPL (7.9%), and SILK (9.8%) HMB
94
32.9%
while state owned NBP reported deposit decline of JSBL
0.6% YoY.
KASBB
64
4.7%
MCB
686
12 4%
12.4%
MEBL
318
22.0%
NBP
1,140
-0.6%
NIB
112
25.3%
SBL
30
39.1%
SILK
79
9.8%
SNBL
156
16.0%
SCBPL
313
7.9%
SMBL
108
12.6%
UBL
918
13.1%
Total
8,483
12.7%

3-Years
CAGR
17.9%
9.4%
15.6%
14.1%
25.3%
27.8%
13.8%
11 6%
11.6%
24.8%
15.5%
45.0%
11.1%
13 6%
13.6%
30.3%
9.8%
1.9%
18.3%
7.6%
19.7%
10.4%
19.9%
17.3%
16.0%

Source: Com pany Accounts, Topline Research

October2014

11

Rising focus on low cost deposits

IIn June
J
2014 Pakistan
2014,
P ki t
li t d banks
listed
b k low
l
costt CASA (Current
(C
t Accounts
A
t Saving
S i
A
Accounts)
t ) deposits
d
it as
percentage of total deposits stood at 70%, almost 1% higher than June 2013 level. CASA helps banks in
enhancing margins.

On individual basis, MCB CASA deposits as percent of total deposits increased by 10.5% to 89% in June
2014 while SMBL CASA deposits increased by 9.3% to 72% and BAHL CASA increased by 7.5% to 77%.

Fall in CASA witnessed in NIB (by 6.9% to 67%) and BAFL (by 6.5% to 64%).

In terms of CASA, SCBPL is on top with 93% followed by MCB at 89%.

Pakistan Listed Banks CASA Deposits


100%
Jun-13

Jun-14

Jun-14 Avg.

90%
80%
70%
60%
50%
40%
30%
20%
10%

October2014

UBL

SMBL

SCBPL

SNBL

SILK

SBL

NIB

NBP

MEBL

MCB

KASBB

Source: Company Accounts, Topline Research

JSBL

HMB

HBL

FABL

BOP

BOK

BIPL

BAFL

BAHL

AKBL

ABL

0%

12

Focus on Current Accounts rising within CASA

Though
Th
h CASA deposits
d
it rose to
t 70% off total
t t l deposits
d
it in
i June
J
2014 from
f
66% in
i Dec
D 2012,
2012 Pakistan
P ki t listed
li t d
bank CA (Current Accounts) deposits increased to 36% on June 2014 from 31% in Dec 2012. Banks are
preferring CA deposits as these are immune from SBP minimum profit payment requirements and are
cheapest source of deposit mobilization.

Amongst listed banks, SMBL CA deposits increased by 12.9% to 39%, MCB CA portion rose by 8.7% to 37%
while BOP also increased its exposure in CA by 7.9% to 28%. Other than these, CA deposit increase was also
seen in AKBL (by 5.1% to 29%), BAHL (by 5.5% to 47%), SILK (by 8.5% to 34%) and SBL (by 6.4% to 30%).

On the negative side, NBP CA portion declined by 4.2% to 36% in June 2014.

In CA deposits, ABL is on top with 51% of Current deposits followed by BAHL at 47%.
Pakistan Listed Banks CA Deposits
60%
Jun-13

Jun-14

Jun-14 Avg.

50%

40%

30%

20%

10%

October2014

UBL

SMBL

SCBPL

SNBL

SILK

SBL

NIB

NBP

MEBL

MCB

KASBB

Source: Company Accounts, Topline Research

JSBL

HMB

HBL

FABL

BOP

BOK

BIPL

BAFL

BAHL

AKBL

ABL

0%

13

Advances growth 5.0% a year in last 5 years

After 2008 economic


Aft
i crisis
i i in
i Pakistan,
P ki t
credit
dit off
ff take
t k remained
i d low
l
d to
due
t low
l
economic
i growth
th and
d
unfavorable business environment.

In last 5 years (2009-13), banking sector advances grew at 5.0% CAGR to reach Rs3.9tn in Dec 2013 while
10 year (2004-13) CAGR stood at 13.3%.

Power, textile, telecom, consumer, construction, chemicals and transport/communication sectors are the
major borrowers in Pakistan.

Improvement in economic outlook and pick up of demand for credit by the business sector have resulted in
12.5% YoY advances growth in June 2014. The growth rate is highest in last 6 years.

At present, Pakistan Commercial banks ADR (Advances to Deposits) stood at 46.6% as on June 2014.
Pakistan Schedule Banks Advances
4,500

Advances Rs bn (LHS)

80%

Advances to Deposits (RHS)

4,000

70%

3,500

60%

3,000
50%
2,500
40%
2,000
30%
1,500
20%

1,000

Jun-14

Dec-13

Dec-12

Dec-11

Dec-10

0%
Dec-09

Dec-08

10%

Dec-07

500

Source: SBP

October2014

14

Pakistan listed banks: June-14 Advances grew by12.3%

Pakistan Listed banks Advances


Advances off Pakistan
Ad
ki
li d banks
listed
b k increased
i
d by
b
Advances
Growth
3-Years
12.3% YoY to Rs4.0tn in June 2014 after a gap of Bank
ADR
CAGR
(Rs bn)
YoY
5 years.
ABL
286
9.1% 44.2%
1.9%
In large banks, MCB, HBL and BAFL remain most AKBL
172
22.8% 50.0%
2.3%
aggressive in lending with advances growth of BAHL
160
6 4% 38.5%
6.4%
38 5% 10.0%
10 0%
27.3%, 19.8% and 17.6%, respectively. However, BAFL
276
17.6% 49.7%
8.0%
UBL advances growth remained at 14.4% while
BIPL
38
23.8% 40.8% 25.1%
ABL advances grew at 9.1%. On the other side,
BOK
27
-0.7% 31.9% 24.8%
NBP advances portfolio fell by 3.9%.
BOP
163
17.0% 48.9%
9.4%
176
0.4% 64.6% 11.3%
During the period, food, textile, chemicals, power, FABL
commerce and transport/communication were HBL
577
19.8% 39.8%
9.0%
the major borrowers while consumer lending also HMB
119
10.8% 42.8%
2.7%
improved.
JSBL
43
81.1% 45.2% 34.2%
KASBB
24
-12.6% 36.9% -5.1%
A advances
As
d
growth
th remain
i almost
l
t in
i line
li with
ith
MCB
284
27.3% 41.5% -0.8%
deposit growth, ADR of Pakistan listed banks
MEBL
116
34.9% 36.0% 28.4%
remained stable at 47%.
NBP
624
-3.9% 54.7%
9.1%
NIB
94
29.9% 84.2%
3.2%
SBL
20
28 5% 65.6%
28.5%
65 6% 14.6%
14 6%
SILK
57
12.6% 74.1%
8.1%
SNBL
90
9.0% 60.6% 21.1%
SCBPL
158
9.7% 50.5%
1.6%
SMBL
57
7.4% 52.5% 11.8%
UBL
438
14 4% 47.7%
14.4%
4 %
7.6%
6%
Total
3,998
12.3% 47.1%
7.7%
Source: Com pany Accounts, Topline Research

October2014

15

Investments growth 32% a year in last 5 years

As advances
A
d
growth
th remained
i d low
l
and
d Govt.
G t fiscal
fi l needs
d increased
i
d after
ft 2008 economic
i crisis,
i i risk
i k averse
bankers started to park funds in risk free Investments with attractive yields.

Further, booming capital markets in last 2 years also encouraged banks to increase stake in stock market
equities.

As a result, Investments of commercial banks increased at 31.8% CAGR (2009-13) to Rs4.3tn.

Pakistan Schedule Banks Investments


5,000

Investments Rs bn (LHS)

60%

Investments to Deposits (RHS)

4,500
50%

4,000
3,500

40%

3,000
30%

2,500
2,000

20%

1,500
1,000

10%

500

October2014

Jun-14

Dec-13

Dec-12

Dec-11

Dec-10

Dec-09

Source: SBP

Dec-08

0%
Dec-07

16

Pakistan listed banks: June-14 Investments grew by 5.4%

Pakistan Listed banks Investments


IInvestments
t
t off Pakistan
P ki t listed
li t d banks
b k increased
i
d by
b
Investments Growth
3-Years
5.4% YoY to Rs4.3tn in June 2014 compared to 3 Bank
IDR
(Rs bn)
YoY
CAGR
year (2011-13) CAGR of 26.9%.
ABL
396
37.2%
61.3%
44.3%
152
3.9%
43.9%
17.5%
In large banks,
ABL and NBP investments AKBL
266
-1.2%
63.9%
20.5%
increased by 37.2%
37 2% and 19.5%,
19 5% respectively.
respectively On BAHL
264
28.5%
47.5%
24.7%
the other side, Investments of HBL fell by 11.6%. BAFL
BIPL
36
19.6%
44.3%
31.8%
While UBL investments remained stable.
BOK
60
49.3%
71.7%
39.0%
On the other side, MEBL investment portfolio fell BOP
142
34.8%
42.7%
30.0%
by 35% YoY on the back of limited investments FABL
111
6.4%
40.9%
9.5%
opportunities available in Islamic instruments.
HBL
752
-11.6%
51.8%
49.9%
HMB
206
14.4%
74.4%
12.1%
IDR (Investment to Deposits ratio) of Pakistan JSBL
55
29.3%
58.2%
47.4%
listed banks declined by 3.5% YoY to 51% in June
KASBB
30
22.3%
46.9%
27.2%
2014.
MCB
449
8.4%
65.5%
28.7%
MEBL
112
-35.0%
72.6%
40.2%
NBP
474
19.5%
41.6%
9.6%
NIB
47
-16.6%
41.6%
5.5%
SBL
19
-17.2%
62.1%
8.1%
SILK
15
-12.5%
28.9%
4.6%
SNBL
68
19.2%
49.7%
10.1%
SCBPL
159
6.5%
51.0%
26.3%
SMBL
42
-28.1%
39.1%
24.5%
UBL
458
-0.3%
49.9%
26.9%
,
5.4%
%
50.8%
%
26.9%
%
Total
4,313
Source: Com pany Accounts, Topline Research

October2014

17

Banks rising investments in high-yielding PIBs

FFor the
th first
fi t time
ti
i Pakistan,
in
P ki t
b k and
banks
d local
l l investors
i
t
h
have
i
invested
t d a record
d Rs2.2tn
R 2 2t in
i Govt.
G t bond
b d auction
ti
(Pakistan Investment Bond/PIB auction) in 9M2014.

As Govt. is re-profiling its debt from short term to long term due to IMF guidelines, local banks are taking
longer term view and have converted their short term investments into high yield Govt. paper.

To recall, yield spread (6-month T-bill versus 3-year PIB), which averaged 57bps during 2009-13, has
widened to average 246bps.

Our estimations suggest that 1.8-2.0% extra yields in PIB over short-term papers can increase banks NIMs
by 30bps while earnings can improve by approx. Rs16bn (15%).

Pakistan Banking Sector Govt. Security Position


3000
PIBs

Tbills

2500

2000

1500

1000

Mar-14

Jun-13

Sep-12

Dec-11

Mar-11

Jun-10

0
Rs bn

Sep-09

500

Source: SBP

October2014

18

Listed Banks increased PIB exposure by 202%


Pakistan Listed banks PIB p
position
As off June
A
J
2014 Pakistan
2014,
P ki t listed
li t d banks
b k (excluding
( l di
Jun 2013 Jun 2014
Growth
AKBL and MCB) PIB investments stood at Rs1.7n, Bank
(Rs bn)
(Rs bn)
YoY
up 202% YoY.
ABL
27
179
562%
Banks with larger book size remained most active AKBL
in the buying spree.
spree In June 2014,
2014 PIB investment BAHL
31
110
251%
of ABL stood at Rs179bn (562% up YoY), UBL BAFL
30
144
376%
stood at Rs245bn (96% up), NBP stood at Rs278bn
BIPL
(266% up) and HBL stood at Rs224bn (145% up).
BOK
9
25
166%
BOP
12
54
362%
FABL
24
44
85%
HBL
91
224
145%
HMB
54
121
122%
JSBL
10
35
237%
KASBB
1
7
459%
MCB
MEBL
NBP
76
278
266%
NIB
22
29
28%
SBL
2
17
690%
SILK
1
5
251%
SNBL
7
40
504%
SCBPL
27
83
208%
SMBL
2
34
1351%
UBL
125
245
96%
*MCB and AKBL do not report PIB positions in interim Total
553
1,671
202%

accounts while MEBL and BIPL (being Islamic banks) can Source: Com pany Accounts, Topline Research
not invest in PIBs or T-bills.

October2014

19

NPLs declining due to better business environment

After 2008 economic


Aft
i crisis,
i i NPLs
NPL off banking
b ki industry
i d t spiked
ik d due
d to
t low
l
economic
i activity,
ti it unhealthy
h lth
business environment and dim outlook.

In last 5 years (2009-13), NPL of Pakistan commercial banks increased by 10.8% CAGR to Rs553bn while
Gross Infection ratio increased from 9.9% in 2008 to 12.6% in 2013.

As signs of economic recovery are more visible now, business activities have revived and borrowers ability
to repay has improved in recent years. In June 2014, NPLs have declined by 3.5% YoY while Gross Infection
has further eased to 12.3% in June 2014.

The improvement has not only resulted into slower NPLs accretion and lower provisions but also triggered
recovery of bad loans.
Pakistan Commercial banks NPLs and Gross Infection
700

NPLs Rs bn (LHS)

18%

Gross Infection ratio (RHS)

16%

600

14%
500
12%
400

10%

300

8%
6%

200
4%
100

2%

Jun-14

Dec-13

Dec-12

Dec-11

Dec-10

Dec-09

Dec-08

0%
Dec-07

Source: SBP

October2014

20

Pakistan Listed Banks NPLs declined by 4.1%


Pakistan Listed Banks Gross Infection Ratio

Pakistan listed banks NPLs which stood at


Rs550bn on June 2013 have dropped to Rs528bn Bank
on June 2014 despite loan book growth of ABL
Rs439bn.
AKBL
Similarly, Gross Infection ratio of listed banks has BAHL
declined to 12% in June 2014 from 13.9% in June BAFL
BIPL
2013.
BOK
Within the listed cluster, BAFL and BOP showed BOP
impressive recovery with drop of 15.0%
15 0% and FABL
13.8% YoY in NPLs. Similarly, NPLs of SMBL
HBL
dropped by 21.0%, NIB dropped by 11.0% and
HMB
MCB dropped by 10.8%.
JSBL
g
side,, NBP NPLs accretion KASBB
On the negative
remained at 17.5% while FABL NPLs increased by MCB
9.1% to Rs29bn.
MEBL
NBP
NIB
SBL
SILK
SNBL
SCBPL
SMBL
UBL
Average

Jun-13
7%
21%
2%
9%
4%
13%
40%
14%
11%
15%
12%
34%
10%
5%
13%
33%
14%
18%
12%
15%
32%
13%
14%

Jun-14
6%
16%
3%
6%
4%
14%
30%
15%
8%
13%
6%
34%
7%
4%
15%
24%
10%
14%
12%
13%
24%
11%
12%

Chg.
-1%
-5%
0%
-2%
0%
1%
-10%
1%
-3%
-1%
-6%
0%
-3%
-1%
2%
-9%
-3%
3%
-4%
0%
-2%
-8%
-2%
-2%

Source: Com pany Accounts, Topline Research

October2014

21

Higher coverage resulting in improved asset quality

Thanks
Th
k to
t the
th aggressive
i provisioning
ii i
and
d falling
f lli
NPL coverage ratio
NPLs,
ti and
d Net
N t NPL ratio
ti off Pakistan
P ki t
commercial banks has improved.

On June 2014, Coverage ratio of Pakistan commercial banks stood at 81.2% compared to a low of 66.9% in
2010. Similarly, Net NPL ratio has also eased to 2.6% on June 2014 vs. 5.3% in 2010.

Pakistan Commercial Banks Asset Quality Trend


100%

Coverage ratio (LHS)

6%

Net NPL ratio (RHS)

90%
5%

80%
70%

4%

60%
50%

3%

40%
2%

30%
20%

1%

10%

October2014

Jun-14

Dec-13

Dec-12

Dec-11

Dec-10

Dec-09

Source: SBP

Dec-08

0%
Dec-07

0%

22

Pakistan Listed Banks Coverage Ratio at 75.4%


Pakistan Listed Banks Net Infection & Coverage Ratio
Net Infection
Coverage Ratio
Jun-13
Jun-14
Jun-13
Jun-14
0.8%
0.5%
89.5%
93.2%
AKBL
6.9%
2.4%
72.4%
87.3%
BAHL
0.4%
0.4%
86.2%
84.7%
BAFL
3.0%
2.1%
66.8%
68.2%
BIPL
1.8%
1.4%
46.8%
52.1%
BOK
3.7%
4.7%
73.9%
69.6%
BOP
28.7%
19.5%
38.8%
43.6%
FABL
4.6%
3.8%
69.4%
76.8%
HBL
3.1%
2.9%
74.8%
67.4%
HMB
4.3%
3.3%
73.5%
77.8%
JSBL
7.5%
2.7%
40.3%
57.5%
KASBB
15.3%
10.4%
65.1%
77.5%
MCB
1.6%
1.3%
85.3%
83.2%
MEBL
0.4%
0.3%
93.3%
93.8%
NBP
3.1%
3.3%
78.6%
81.4%
NIB
12.5%
6.3%
71.4%
78.8%
SBL
0.4%
0.2%
97.7%
98.0%
SILK
10.4%
6.3%
47.9%
58.7%
SNBL
4.2%
3.4%
66.3%
70.5%
SCBPL
1.8%
1.9%
90.0%
87.7%
SMBL
16.1%
8.4%
58.5%
70.8%
UBL
3.5%
2.0%
77.0%
83.9%
Average
4.5%
3.3%
70.8%
75.4%

Aggressive
A
i
provisioning
ii i
and
d falling
f lli
NPL are
NPLs
improving asset quality Pakistan listed banks as
Bank
Net Infection is falling and Coverage Ratios is
ABL
improving.

In June 2014,
2014 Net Infection of listed banks stood
at 3.3%, a drop of 130bps from June 2013 level.
Similarly, Coverage ratio has improved to 75.4%
in June 2014 from 70.8% in June 2013.

Within the listed cluster, BOP, SMBL, NIB and


AKBL showed impressive recovery by reducing Net
Infection and improving Coverage ratio.

On the negative side, NBP Net


deteriorated by 20bps YoY to 3.3%.

Infection

Source: Com pany Accounts, Topline Research

October2014

23

NIMs to improve on higher asset return

Despite
D
it monetary
t
easing
i off 500bps
500b (during
(d i July
J l 2011 to
t June
J
2013) costt off funds
2013),
f d off the
th banking
b ki sector
t
remained insensitive due to SBPs tightening regulations on payment of minimum return to PLS (Profit &
Loss sharing) saving deposits, which is about 37% of industry deposits. Now SBP has effectively linked PLS
saving deposits return to the policy/discount rate. On the other side, return on advances proportionately
moves with SBP policy rate. This has resulted in tighter banking spreads.

In 8M2014, banking spreads (between deposit cost and lending return) averaged at 6.04% vs. 6.26% in the
same period last year. In August 2014, banking spreads declined to 5.75% in August 2014, lowest after Feb
2005.

However, we expect rising NIMs in coming years, on the back of banks rising focus on low cost deposits,
higher return on investment (due to rising PIB investments) and lending growth.
Historical Banking Spread
16%

Return on Advances

Banking Spreads vs. Policy Rate


Cost of Deposits

16%

Banking Spreads

SBP Policy rate

14%
14%
12%
12%
10%

10%

8%

8%

6%

Source: SBP

October2014

Jan-14

Jan-13

Jan-12

Jan-11

Jan-10

Jan-09

Jan-07

Jan-14

Jan-13

Jan-12

0%
Jan-11

0%
Jan-10

2%

Jan-09

2%

Jan-08

4%

Jan-07

4%

Jan-08

6%

Source: SBP

24

NII growing on rising CA deposits and PIBs

Pakistan Listed Banks NII & NIMs


NII off Pakistan
P ki t listed
li t d banks
b k increased
i
d by
b 18.5%
18 5%
NII
NIMs
YoY to Rs177bn in 1H2014 while NIMs improved Rs bn
Bank
1H2013 1H2014
1H2013 1H2014
to 4.4% in 1H2014 (4.1% in 1H2013).
ABL
10.39
12.87
4.0%
4.2%
On individual basis, NII of ABL grew at 23.8% to AKBL
3.85
5.53
2.6%
3.4%
Rs12 9bn while HBL grew by 20.9%
Rs12.9bn
20 9% to Rs31.7bn
Rs31 7bn BAHL
7 01
7.01
8 68
8.68
3 5%
3.5%
4 1%
4.1%
and NBP grew by 19.2% to Rs22.1bn.
BAFL
7.86
9.57
3.7%
3.9%
1.27
1.50
4.5%
4.3%
In smaller banks, impressive NII growth was BIPL
1.46
1.66
4.4%
4.1%
witnessed in BOP (152.3%), AKBL (43.5%), FABL BOK
BOP
1.10
2.78
0.9%
1.9%
(49.2%), SILK (76.9%) and JSBL (57.5%).
FABL
4.48
6.68
3.4%
4.8%
Though banking spreads are at historic low, HBL
26.24
31.73
4.1%
4.6%
growth in NII comes from higher portion of low HMB
4.24
5.14
3.2%
3.2%
cost deposits, rising credit growth and higher
JSBL
1.08
1.71
3.2%
3.8%
return on Govt. bonds as discussed before.
KASBB
1.30
1.00
4.8%
4.1%
MCB
18.86
21.49
5.9%
6.0%
MEBL
5.36
6.10
4.3%
4.9%
NBP
20.53
20.03
4.4%
4.0%
NIB
1.66
1.78
2.4%
2.6%
SBL
0 65
0.65
0 81
0.81
4 3%
4.3%
4 2%
4.2%
SILK
0.98
1.74
2.9%
4.9%
SNBL
2.43
2.89
3.5%
3.8%
SCBPL
9.58
10.00
6.8%
6.4%
SMBL
0.23
0.98
0.4%
2.2%
UBL
18.50
22.05
4.8%
5.0%
Total
149.1
176.7
4.1%
4.4%
Source: Com pany Accounts, Topline Research

October2014

25

Non-interest Income also rising

IIn addition
dditi to
t core banking
b ki operations,
ti
N I t
Non-Interest
t income
i
i also
is
l a significant
i ifi t contributor
t ib t to
t the
th banking
b ki
sector profits.

Rising banking penetration, branchless banking, banks active role in capital markets has resulted in higher
Non-Interest Income.

Non-Interest Income to Gross income ratio, which was 30.8% in 2007 and dropped to 23.8% in 2011, has
now improved to 29.5% on June 2014.

Pakistan Commercial banks Non-Interest Income to Gross Income


32%

30%

28%

26%

24%

22%

Jun-14

Dec-13

Dec-12

Dec-11

Dec-10

Dec-09

Dec-08

Dec-07

20%

Source: SBP

October2014

26

Listed banks Non-interest Income

In 1H2014, Non-Interest Income of Pakistan


listed banks increased by 16.5% to Rs79.2bn.

Improvement in the income is mainly linked to


rising fee income, forex gains and investment
income (Dividend and Capital gain).

In large banks, the income of HBL increased by


41% YoY to Rs11.3bn while growth for NBP and
UBL remained at 13.3% and 16.4% to Rs15.3bn
and Rs11.0bn,
Rs11 0bn respectively.
respectively

In smaller banks, AKBL showed impressive growth


of 65.5% to Rs2.9bn while MEBL growth
remained at 47.8% to Rs2.3bn.

Though Non-Interest Income increased in rupee


terms, Pakistan listed banks Non-Interest Income
to Gross Income ratio remained stable at 30.8%.

Pakistan Listed Banks Non-Interest Income


Rs bn
Non-Interest Income
Non-Int./Total Income
Bank
1H2013
1H2014
1H2013
1H2014
ABL
5.06
6.38
32.7%
33.1%
AKBL
1.78
2.95
31.6%
34.8%
BAHL
1.90
2.10
21.3%
19.5%
BAFL
3 89
3.89
4 37
4.37
33 1%
33.1%
31 4%
31.4%
BIPL
0.23
0.33
15.3%
17.9%
BOK
0.35
0.54
19.4%
24.7%
BOP
2.05
1.26
65.0%
31.2%
FABL
2.24
2.20
33.3%
24.8%
HBL
8 03
8.03
11 32
11.32
23 4%
23.4%
26 3%
26.3%
HMB
2.74
2.60
39.3%
33.6%
JSBL
1.30
1.19
54.6%
41.0%
KASBB
0.59
0.56
31.2%
35.8%
MCB
6.00
5.62
24.1%
20.7%
MEBL
1.56
2.31
22.6%
27.5%
NBP
13.55
15.35
39.8%
43.4%
NIB
1.37
1.67
45.2%
48.5%
SBL
0.09
0.10
12.5%
10.8%
SILK
0.62
0.79
38.7%
31.1%
SNBL
1.06
1.43
30.4%
33.2%
SCBPL
3 42
3.42
4 17
4.17
26 3%
26.3%
29 4%
29.4%
SMBL
0.70
1.01
75.1%
50.8%
UBL
9.43
10.97
33.8%
33.2%
Total
68.0
79.2
31.3%
31.0%
Source: Com pany Accounts, Topline Research

October2014

27

Cost to Income ratio declining

In 2007, Pakistan commercial banks Cost to Pakistan Listed Banks Non-Interest Expenses
Non-Interest Exp.
Cost to Income
Income stood at 42.8% which spiked due to low Rs bn
Bank
1H2013 1H2014
1H2013 1H2014
banking income after 2008 crisis .

In addition, inflationary pressures, rising branch


network and improving service quality has also
pushed the admin cost of the banks.

In listed banks, 1H2014 Non-Interest expenses


increased by 15.8% YoY to Rs137.8bn while Cost
to Income declined by 100bps to 55.1%.

In large banks, admin cost of HBL increased by


22.2% YoY while growth for MCB remained at
20.3%. Admin cost of UBL and NBP increased by
10.5% and 10.2%, respectively.

Commercial banks Cost to Income


60%
55%
50%
45%

ABL
AKBL
BAHL
BAFL
BIPL
BOK
BOP
FABL
HBL
HMB
JSBL
KASBB
MCB
MEBL
NBP
NIB
SBL
SILK
SNBL
SCBPL
SMBL
UBL
Total

7.47
4.82
4.81
8.09
1.26
0.92
2.55
5.14
17 20
17.20
3.16
1.77
1.47
8.13
4.01
18.29
2.60
0.74
2.14
2.23
6.20
2.15
13.81
119.0

8.36
5.57
6.02
9.43
1.58
1.18
2.94
6.56
21 02
21.02
3.65
2.09
1.48
9.78
4.98
20.17
2.95
0.76
2.20
2.83
6.56
2.38
15.26
137.8

48.3%
85.7%
54.0%
68.8%
84.1%
51.0%
80.8%
76.6%
50 2%
50.2%
45.3%
74.3%
78.0%
32.7%
58.0%
53.7%
85.9%
100.5%
133.4%
63.8%
47.7%
230.4%
49.5%
54.8%

43.4%
65.8%
55.8%
67.6%
86.1%
53.5%
72.7%
73.8%
48 8%
48.8%
47.2%
72.4%
95.3%
36.1%
59.2%
57.0%
85.5%
84.0%
87.1%
65.6%
46.3%
119.3%
46.2%
53.8%

Source: Com pany Accounts, Topline Research


Jun-14

Dec-13

Dec-12

Dec-11

Dec-10

Dec-09

Dec-08

Dec-07

40%

Source: SBP

October2014

28

Pakistan banks profits rose at 5-year CAGR of 21%

Pakistan Listed Banks Profits


IIn last
l t 5 years (2009-13),
(2009 13) profits
fit off Pakistan
P ki t
Rs bn
Profit
commercial banks increased at 21.3% CAGR.
Bank
1H2013
1H2014
5,588
7,195
High growth in last 5 years, is not only ABL
attributable to recent improving fundamentals, AKBL
(4,094)
2,181
but also to low earnings during 2008
2008-10
10 due to BAHL
2 492
2,492
2 968
2,968
economic crisis.
BAFL
1,943
2,610
BIPL
99
160
In 1H2014, profits of listed banks increased by
553
634
35% YoY. This growth in mainly because of BOK
988
1,372
higher NII, low provisions and strong Non- BOP
FABL
762
740
Interest Income.
HBL
10,377
14,487
On individual bank basis, profits of HBL increased HMB
1,789
2,110
by 49.6% YoY to Rs14.5bn in 1H2014 while JSBL
145
429
growth for UBL and NBP remained at 27.6% each.
((161))
((54))
KASBB
ABL profits
fit increased
i
d by
b 28.8%.
28 8% On
O the
th negative
ti
MCB
12,206
11,792
side, MCB reported declined in profits by 3.4%.
MEBL
1,933
2,254
NBP
6,012
7,670
NIB
1,048
579
SBL
37
125
SILK
(364)
73
SNBL
551
664
SCBPL
4,741
4,789
SMBL
(1,143)
(944)
UBL
8,862
11,305
Total
54,364
73,137

Growth
29%
NM
19%
34%
61%
15%
39%
-3%
40%
18%
197%
NM
-3%
17%
28%
-45%
235%
NM
20%
1%
NM
28%
35%

Source: Com pany Accounts, Topline Research

October2014

29

Listed banks ROE increased to 16%

ROE of Pakistan listed banks has increased from Pakistan Listed Banks ROE and CAR
ROE
13.9% in 1H2013 to 16.0% in 1H2014.

5 years ago (in 2008), ROE of


commercial banks was 7.3%.

Similarly, CAR (Capital Adequacy Ratio) has also


improved from 12.6% in 2008 to 14.9% in 2013.

Improvement is mainly because of rising


profitability, prudent lending practices, higher
investments income and slow NPL accretion.
accretion

On individual bank basis, ROE of HBL increased


by 3% YoY to Rs19.8% in 1H2014 while UBL ROE
improved by 2.2% to 20.3%. In small banks, BOP,
HMB,, JJSBL and SBL showed impressive
p
ROE
growth.

Pakistan

Bank
ABL
AKBL
BAHL
BAFL
BIPL
BOK
BOP
FABL
HBL
HMB
JSBL
KASBB
MCB
MEBL
NBP
NIB
SBL
SILK
SNBL
SCBPL
SMBL
UBL
Total

1H2013
20.0%
NM
23.3%
14 5%
14.5%
3.5%
9.1%
15.5%
7.1%
16.9%
13.2%
3.2%
NM
22.9%
22.1%
8.7%
%
14.7%
0.7%
NM
8.6%
25 4%
25.4%
NM
18.1%
13.9%

1H2014
20.6%
21.4%
22.1%
16 8%
16.8%
4.8%
9.7%
19.0%
6.8%
19.8%
15.3%
6.4%
NM
19.7%
21.6%
9.4%
%
7.0%
2.4%
2.2%
9.6%
17 3%
17.3%
NM
20.3%
16.0%

CAR
2012
16.3%
9.4%
16.0%
12 6%
12.6%
15.5%
25.1%
7.7%
10.7%
15.3%
16.9%
19.0%
1.1%
22.3%
14.1%
16.1%
%
12.1%
43.9%
5.7%
12.4%
14 4%
14.4%
4.6%
14.8%
14.8%

2013
18.0%
11.9%
14.6%
12 1%
12.1%
15.7%
24.0%
9.0%
11.3%
15.4%
16.3%
24.3%
-1.9%
22.2%
12.5%
16.1%
%
12.0%
42.4%
7.7%
11.0%
16 9%
16.9%
4.4%
13.3%
14.9%

Source: Com pany Accounts, Topline Research

October2014

30

CONTACT US
Mohammed Sohail

Zeeshan Afzal

CEO

Analyst Banking Sector

Dir : +9221-35303333-4
Cell: +92300-8232726

Dir : +9221-35303346
Cell: +92322-6755552

sohail@topline.com.pk

zeeshan.afzal@topline.com.pk

Corporate Office:
306, Continental Trade Center,
Block 8, Main Clifton, Karachi,
Pakistan.
Phone +9221-35303330-2
Fax +9221-35303349

31

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