#1ALLIED BANK LIMITED Investor Presentation - March 2020 Financial Results#2ALLIED BANK LIMITED Table of Contents ABL at a Glance A Investments Deposits A 1 2-4 5 6 8 Stock Market Data 10-11 Major Highlights Balance Sheet Income Statement Advances & Key Ratios & Awards & Asset Quality Channels CGR#3A ABL At Glance ATMs: 1,549 On-site: 1,201 Off-site: 345 MBU: 3 Overseas Branches Bahrain WBU Entity Credit Rating Long Term: AAA Short Term: A1+ Corporate Governance Rating Rep Offices Export Processing Zone Subsidiary CGR 9+ Asset Management UAE-Dubai China-Beijing Domestic Co. Ltd. Holding 100% Digital Branches Touch Points 1,386 (incl.117 Islamic) 15 1#4^ Highlights Financial Position (Assets) 1,600 1,200 1,000 800 1,481 600 400 200 (Rs. in Billion) 100 -13 2 1,400 -84 -23 0 -10% -5% 2% -100 -11% -200 1,363 -300 -400 -500 Dec-19 Cash, Bank Investments Advances Balances & Lending to Fls Operating Fixed and Other Assets Mar-20 Total Assets Fall Rise Total Assets stood at Rs. 1,363 Billion (decreasing by 8%). Investment portfolio optimized due to evolving yield curve and capital market expectations amidst Covid-19 outbreak; Total Investments thereby reached Rs. 674 billion (decreasing by 11% compared to an industry growth of 6%) Net Advances stood at Rs. 462 Billion (decreasing by 5% compared to an industry growth of 1%) Particulars Mar' 20 Dec'19 ABL Growth Industry Growth Cash, Bank Balance & Lending to Fl 121 134 -10% 2% Investments 674 758 -11% 6% Advances - Net 462 485 -5% 1% Operating fixed & other assets 106 104 2% 3% Total Assets 1,363 1,481 -8% 3% 2#5-109 -7 0.05 A Highlights Financial Position (Liabilities) 1,600 1,400 (Rs. in Billion) 50 0 1,200 Total Liabilities (decreased by 8%) Rs. 1,250 Billion 1,000 0% -1% -50 800 600 1,365 1,250 -100 400 -41% -150 200 -200 Deposits aggregated to reach Rs. 1,042 billion; decrease of 1%. CASA Mar'20 improved to: 83.8% (Dec'19: 82.9%). Dec-19 Borrowings Deposits Def. tax, Bills Payable & Other Liab. Mar-20 Total Liabilities Fall Rise •Total Equity stood at Rs.113 billion (US$ 681 Million). •CAR: 23% as at March 31, 2019; Industry CAR Dec 19:17% ABL Industry Particulars Mar'20 Dec'19 Growth Growth Borrowings 158 266 -41% 4% Deposits & Other Accounts 1,042 1,049 -1% 3% Def Tax, Bills Payable & Other Liab. 50 50 0% -1% Total Liabilities 1,250 1,366 -8% 3% 3#6A Highlights Income Statement (Rs. in Million) 7,000 2,031 6,000 1,128 702 313 -885 5,000 21% 12% 19% -21% 4,000 434% 3,000 2,000 2,985 1,000 4,018 PAT Mar'19 NII Non-Markup Non-Markup Provision Income Expense Reversal Taxation PAT Mar'20 PAT Fall Rise Particulars Mar' 20 Interest Income 32,071 Mar'19 24,344 QoQ 32% Interest Expense 20,454 14,759 39% Net Interest Income (NII) 11,616 9,585 21% Non Markup Income Gross Income 2,850 2,537 12% 14,466 12,122 19% Non Markup Expense 7,204 6,076 19% Profit Before Provisions 7,262 6,046 20% Provision Reversal 681 (204) -434% Profit Before Taxation 6,581 6,250 5% Current Year Taxation 2,563 2,430 5% Profit After Current Taxation 4,018 3,820 5% Prior Year Super Tax 835 100% Profit After Taxation 4,018 2,985 35% EPS 3.51 2.61 34% . • • Rate Variance along with volumetric growth in earning assets and effective duration management facilitated growth of 21% in Net Interest Income. Fee & Commission income increased by 11%. Capital Gains of Rs. 1,101 million recognized through sale of Fixed Income securities and equity portfolio. • Administrative cost growth restricted to 19% despite investment in Human Resource, significant increase in regulatory & FATE related compliance costs and cost of doing business. Compounding of systematic risks amidst COVID-19 outbreak led to recognition of net charge of Rs. 579 million for diminution in value of equity securities Profit after tax increased by 10%; EPS Increased to Rs 3.51 per share compared to Rs 2.61 in the corresponding period. 4#7A Investments Investments Pakistan Investment Bonds (Rs. in Million) Mar' 20 Dec '19 Var. Growth 216,588 154,349 62,238 40% Market Treasury Bills 400,191 542,566 (142,375) -26% Listed and Unlisted Shares 24,116 25.344 (1,229) -5% TFCs, Bonds, Sukuks and Mutual Funds 30,087 27,347 2,740 10% Subsidiary 500 500 0% 4% 3% Investments at Cost 671,482 750,106 (78,625) -10% 21% Prov. for dimin. in value of investments (4,013) (3,584) (429) 12% 4% 4% Surplus on Revaluation 6,339 11,435 (5,096) -45% 32% Investments at Carrying Value 673,808 757,957 (84,149) -11% Mar 20 Dec 19 Investments Mar'20 Dec 19 Surplus/ (Deficit) on revaluation of securities 6,339 11.435 Pakistan Investment Bonds 60% Market Treasury Bills Pakistan Investment Bonds 4,759 784 Listed and Unlisted Shares 72% Market Treasury Bills TFCs, Bonds, Sukuks and Mutual Funds 1,354 177 Listed and Unlisted Shares 1,785 9,686 TFCs, Bonds, Sukuks and Mutual Funds (1,559) 788 Total Investments at market value 673,808 757.957 5#825 A 600 500 7.8% 400 300 262 200 100 Advances & Asset & Asset Quality (Rs. in Billion) 9% 7.2% 500 6.8% 7.0% 477 8% 6.4% 454 7% 5.9% 6% 326 341 4.6% 289 5% 285 349 3.5% 3.2% 389 3.3% 4% 3% 2% 1% 2011 2012 2013 20 15 95% 2014 Gross Advances 2015 2016 2017 2018 NPL Ratio 2019 Q1-2020 10 87% 87% 86% 86% 5 2011 2012 2013 2014 2015 2016 98% 96% 96% 96% 96% 94% 92% 93% 92% 90% 88% 86% 84% 82% 80% 2017 2018 2019 Q1-2020 Provision Held INPL Coverage 0% Gross Advances reached Rs. 477 billion (5%) (Industry Growth 1%) Net ADR ratio reached 46% (Industry Dec' 19 ADR: 52%) NPLs at 15.8 Billion (0.1%↓) •NPL Ratio 3.32% (0.15% 1); Industry Dec'19: 8.1% •NPL Coverage 96% (0.7% ↑); Industry Dec'19: 84.7% Key sectors include Non Financial Public Sector Enterprise, Power, Textile, NBFI's and Chemical remained key sectors. 6#9A Deposits (Rs. in Billion) Particulars Mar' 20 Dec' 19 Var (%) Market Share: 7% Current 391 411 -5% Saving 481 458 Industry Growth: 3% 5% Term 170 181 -6% Total Deposits CASA Mix: 84% 1,042 1.049 -1% 1,200 1,000 985 1,049 1,042 883 800 805 668 666 711 735 707 608 600 515 400 371 400 617 485 496 534 504 522 413 356 200 262 2010 2011 2012 289 2013 Total Deposits 2014 Q1 15 Q2 15 Q3 15 2015 2016 CASA (Incld. Current Rem) 2017 2018 2019 Q1-2020 868 872 809 690 7#10A Key Channels & Ratios Key Ratios Month ☐ Pakista JAMMU AND KASHMIR ABL Industry Mar'20 Dec'19 Dec' 19 ROA (%) 1.1% 1.0% 1.5% ROE (Tier 1) (%) 17.9% 16.2% 12.3% Capital Adequacy Ratio (%) 23.0% 21.7% 17.0% Channels Mar' 20 Dec' 19 Growth Total Branches 1,388 1,395 (7) Conventional 1,271 1,278 (7) Islamic Total ATMs 117 117 1,549 1,515 34 On-site 1,201 1,186 15 Off-site 345 328 17 Mobile Banking Units 3 1 2 ATM Network Uptime (%) 97% 97% Islamic Windows 60 60 8#1118,000 A Stock Market Data Pakistan Stock Exchange Code: ABL Bloomberg Code: ABL PA Shares Outstanding (min): 1,145.07 Market Capitalization (Rs. bln): 81.437 Stock Price as at Mar 31: Rs. 71.12 Period High/Low: 71.83/68.00 10% 5% 0% -5% 16,000 14,000 40% 45% 55% 12,000 55% 58% 63% 57% 80% 16.00 65% 69% 70% 10,000 37% 14.00 EPS vs PE Ratio 8,000 36% 60% 12.00 50% 6,000 4,000 40% 10.00 2,000 30% 8.00 2010 2011 2012 2013 2014 2015 Dividend Payout Profit After Tax (PAT) (Rs in Millions) —Dividend as (%) of PAT 2016 2017 2018 2019 Q1-2020 9.46 20% 6.00 7.14 10% 7.64 4.00 -15% -20% -25% -30% -35% -40% Jan-20 8-Jan-20 15-Jan-20 22-Jan-20 29-Jan-20 5-Feb-20 12-Feb-20 19-Feb-20 26-Feb-20 4-Mar-20 Post Covid-19 11-Mar-20 ABL Stock Price vs Market Trend ABL % change Market % Change 18-Mar-20 25-Mar-20 9.51 7.76 0% 2.00 5.07 2015 2016 2017 2018 2019 Q1-2020 EPS -PE Ratio#12A 1 Awards & Achievements 234 5 6 7 8 CFA Society Pakistan - - Best Bank of the Year 2018 - Large size Bank Best Primary Best Place to Top Issuer of Dealer SBP 2018-19 Work in Financial Services 2019- PSHRM PayPak Debit Cards by 1- Link SAFA- Certificate of Merit Corporate Governance Disclosure Certificate of Excellence 2020 - Management Association of Pakistan Best Corporate Report 2018 Awards by ICAP/ICMA P -2nd Position Utility Deal of the Year from Triple A Asia Infrastructure Awards & CFA Society Pakistan Allied Bank Limited Best Bank of the Year 2018 Large Size Haaks WINNER BEST PRIMARY DEALER 2018-19 BY SBP BEST WORK PayPak پے پاک Top Issuer of PayPak Debit Cards by 1-Link SOUTH ASIAN TON OF ACCOUNTANTS GAFA) C ACA Certificate of Mot Alled Bank Limited, Pakistan Core Sex 2017 Corporate Excellence Awards ICMA CA Best Corporate Reporte of 2018 Awards Sharke's Allied Bank Limited 2nd Position Sector Banks Most Innovative Islamic Bank Window by International Finance Awards 10#13. • • Corporate Governance & Ratings AAA (Long Term) A1+ (Short Term) Entity Rating A very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments & not being significantly vulnerable to foreseeable events PACRA CGR • CGR-9+ (Corporate Governance Rating) • Very high level of corporate governance; the rating action takes into consideration the continued commitment of the board & management of the Bank to maintain a sound governance framework. VIS Credit Rating Company • B3 Deposits Rating reflects bank's stable deposits-based funding profile, high liquidity buffer & good earnings generating capacity. ⚫ Outlook stable, constrained by the stable outlook on the sovereign rating. Moody's 11#14A Annexures Annexure A Statement of Financial Position - Standalone Basis Annexure B Statement of Financial Position - Consolidated Annexure C Income Statement - Standalone Basis Annexure D Income Statement Consolidated 12#15A Statement of Financial Statement of Financial Position: Standalone Rs. in Million ASSETS Mar'20 Dec 19 Cash and Balances with Banks 87,530 120,546 Var. (33,016) US $ in Million Mar 20 Dec'19 Var. Growth 526 724 (198) -27% Lending to Fls 33,525 13,607 19,918 201 82 120 146% Investments 673,808 757,957 (84,149) 4,049 4,555 (506) -11% Advances - net 461,523 485,016 (23,493) 2,774 2,915 (141) -5% Fixed Assets 65,546 64,084 1,462 394 385 9 2% Other Assets 40,898 39,911 987 246 240 6 2% TOTAL ASSETS 1,362,830 1,481,121 (118,291) 8,190 8,901 (711) -8% LIABILITIES Deposits 1,041,881 1,049,043 (7,162) 6,261 6,304 (43) -1% Borrowings Bills Payable 157,603 7,371 Other Liabilities 42,678 TOTAL LIABILITIES 1,249,532 266,448 7,879 42,400 1,365,770 (108,845) 947 1,601 (654) -41% (508) 44 47 (3) -6% 278 256 255 2 1% (116,237) 7,509 8,208 (699) -9% NET ASSETS 113,298 115,351 (2,053) 681 693 (12) -2% EQUITY and RESERVES Share Capital 11,451 11,451 69 69 0% Reserves 79,305 78,091 1,214 477 469 7 2% Equity Tier I 90,756 89,542 1,214 545 538 7 1% Equity Tier II 113,298 115,351 (2,053) 681 693 (12) -2% 13#16A Statement of Financial Statement of Financial Position : Consolidated Rs. in Million US$ in Million ASSETS Growth Mar' 20 Dec 19 Var. Mar' 20 Dec'19 Var. Cash and Balances with Banks 87,521 120,538 (33,017) 526 724 (198) -27% Lending to Fis Investments 33,525 675,330 13,607 759,654 (84,324) 19,918 201 82 120 146% 4,058 4,565 (507) -11% Advances net 461,571 485,052 (23,481) 2,774 2,915 (141) -5% Operating fixed assets 65,670 64,216 1,454 395 386 2% Other Assets 41,342 40,317 1,025 248 242 6 3% TOTAL ASSETS 1,364,959 1,483,383 (118,425) 8,203 8,915 (712) -8% LIABILITIES Deposits 1,041,859 1,049,019 (7,160) 6,261 6,304 (43) -1% Borrowings 157,603 266,448 (108,845) 947 1,601 (654) -41% Bills Payable 7,371 Other Liabilities 43,095 7,879 42,826 (508) 44 47 (3) -6% 269 259 257 2 1% TOTAL LIABILITIES 1,249,928 1,366,172 (116,244) 7,512 8,210 (699) -9% NET ASSETS 115,031 117,212 (2,180) 691 704 (13) -2% EQUITY and RESERVES Share Capital 11,451 11,451 69 69 0% Reserves 81,038 79,952 1,086 487 480 7 1% Equity Tier I 92,489 91,403 1,086 556 549 7 1% Equity Tier II 115,031 117,212 (2,181) 691 704 (13) -2% 14#17A Income Statement: Standalone Particulars Rs. in Million US$ in Million Growth Mar' 20 Mar'19 Var. Mar' 20 Mar'19 Var. Mark-up/interest Income 32,071 24,344 7,727 193 146 46 32% Mark-up/interest Expensed 20,454 14,759 5,695 123 89 34 39% Net Mark-up/interest Income 11,616 9,585 2,031 70 58 12 21% Capital Gain & Dividend 1,479 425 1,054 9 3 6 248% Fee based Income & Others 1,371 2,112 (741) 8 13 (4) -35% Non Mark-up/ Interest Income 2,850 2,537 313 17 15 2 12% Gross Income 14,466 12,122 2,344 87 73 14 19% Human Resource Cost 3,318 2,867 451 20 17 3 16% Other Operating Cost 3,886 3,209 677 23 19 4 21% Total Operating Cost 7,204 6,076 1,128 43 37 7 19% Operating Profit/(Loss) 7,262 6,046 1,216 44 36 7 20% Total Provisions 681 (204) 885 (1) 5 -434% Profit Before Tax 6,581 6,250 331 40 38 2 5% Taxation-Current 2,563 2,430 133 15 15 1 5% Profit Before Prior Year Super Tax 4,018 3,820 198 24 23 1 5% Super Tax Prior Year 835 (835) 5 (5) 100% Profit After Tax 4,018 2,985 1,033 24 18 10 6 35% 15#18^ Income Statement: Consolidated A Rs. in Million US$ in Million Particulars Growth Mar' 20 Mar'19 Var. Mar' 20 Mar'19 Var. Mark-up/interest Income 32,071 24,345 7,726 193 146 46 32% Mark-up/interest Expensed 20,455 14,759 5,696 123 89 34 39% Net Mark-up/interest Income 11,616 9,586 2,030 70 58 12 21% Capital Gain & Dividend 1,257 507 750 8 3 5 148% Fee based Income & Others 1,544 2,257 (713) 9 14 (4) -32% Non Mark-up/ Interest Income 2,801 2,764 37 17 17 0 1% Gross Income 14,417 12,350 2,067 87 74 12 17% Human Resource Cost 3,385 2,912 472 20 18 3 16% Other Operating Cost 3,923 3,261 662 24 20 st 4 20% Total Operating Cost Operating Profit/(Loss) Total Provisions 7,308 6,172 1,136 44 37 7 18% 7,109 6,177 932 43 37 6 15% 681 (204) 885 4 (1) 5 -434% Profit Before Tax 6,428 6,381 47 39 38 0 1% Taxation - Current 2,538 2,452 86 15 15 1 4% Profit Before Prior Year Super Tax 3,890 3,929 (39) 23 24 (0) -1% Super Tax Prior Year 835 (835) 5 Profit After Tax 3,890 3,094 796 23 19 55 (5) 100% 5 26% 16#19A Disclaimer The information being presented herein is solely for your information. Except for the historical information, statements that describe the Bank's objectives, plans or goals discussed in Investor Conference Call are forward-looking statements. These forward looking statements involve a number of risks, uncertainties and other factors and are made based on management's current expectations or beliefs as well as assumptions made by and information currently available to management. The information presented is subject to change without notice. 17#20Contact Us 8 Humza Taimur Unit Head Strategic Planning fin A Allied Bank +92-42-35880043 [email protected] Ext: 32641 آپ کے دل میں ہمارا اکاؤنٹ#21A Allied Bank THANK YOU آپ کے دل میں ہمارا اکاؤنٹ