#1A Allied Bank Financial Presentation - March 2022 10001)#2A Contents ABL at Glance & Economic Highlights Stock Market Investments Deposits Information Annexures 3-4 5-7 8 9 10 11 12 13-14 15-19 Major Highlights Balance Sheet Income Statement Advances & Asset Quality Key Ratios & Channels Awards & Ratings#3A ABL at Glance ATMs:1,567 On-site: 1,288 Off-site: 274 MBU: 5 Overseas Branches: 2 Bahrain WBU Entity Credit Rating Long Term: AAA Short Term: A1+ Corporate Governance Rating Rep Offices: 2 Export Processing Subsidiary CGR 9++ Zone Asset Management Co. Ltd. UAE-Dubai China-Beijing Domestic Branches: Holding 100% Digital Touch 1,427 Points Conventional: 1,303 Islamic: 117 18 Digital: 7 3/22#4A Economic Highlights SBP Reserves and Exchange Rate 25,000 20,000 15,000 10,000 5,000 166 153 154 158 162 171 176 172 177 177 177 183 Workers Remmittances- US$ Million 3,000 153 2,500 2,000 1,500 1,000 0 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 SBP Reserves (US$ million) Exchange Rate 8,000 Export & Import- US$ Million 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Exports (Goods & Services US$ Min) Imports (Goods & Services US$ Min) 500 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 2021-22 2020-21 TD (500) (1,000) (1,500) (2,000) (2,500) (3,000) (3,500) (4,000) (4,500) (5,000) Trade Deficit & Current Account - US$ Million CAD ITN (500) (1,000) (1,500) (2,000) (2,500) (3,000) Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Trade Deficit (US$ Min) Nov-21 Current Account (US$ Min) 4/22#5A ^ Highlights Financial Position (Assets) (Rs. in Billion) 2,010 10% -17% -29 -1% -4% -6 12 -27 Dec-21 Cash, Bank Investments Advances Balances & Lending to Operating Fixed and Other Assets Fls Total Assets Fall Rise Total Assets reached at Rs. 1,959 billion (Decreased by 3%). 1,959 Mar-22 Net Advances reached at Rs. 626 billion as on Mar 31, 2022 decreased by 4% as against Rs. 653 billion as on December 31, 2021 Particulars Mar' 22 Dec'21 ABL Industry Growth Growth Total Investments thereby reached Rs. 1,058 billion Cash, Bank Balance & Lending to Fl's 142 171 -17% -16% (Decreased by 1%). Investments- Net 1,058 1,064 -1% 6% Advances - Net 626 653 -4% 2% Operating fixed and other assets 134 122 10% 7% Total Assets 1,959 2,010 -3% 2% 5/22#6^ Highlights Financial Position (Liabilities) A (Rs. in Billion) -16% 0.3% 21% 4 10 -67 1,883 1,830 Total Liabilities stood at Rs. 1,830 billion (Decline by -3%) Dec-21 Borrowings Deposits Def. tax, Bills Payable & Other Liab. Mar-22 Total Liabilities Fall Rise ABL Industry Particulars Mar' 22 Dec'21 Growth Growth CASA Mar'21 Stood at: 81% Deposits aggregated to reach Rs. 1,417 billion; increase of 0.3%. Total Equity stood at Rs.128.9 billion (US$ 703 million); Increased by 1% (Dec 21: Rs.127.2 billion) CAR: 22.38%%; as at Mar 2022 Borrowings 353 420 -16% 22% Deposits and Other Accounts 1,417 1,413 0.3% -2% (Dec 21: 22.33%); Industry CAR Dec 21:16.7% Deferred Tax, Bills Payable & Other Liabilities 60 50 21% 7% Total Liabilities 1,830 1,883 -3% 2% 6/22#7^ Highlights Income Statement (Rs. in Billion) 4,029 16% 7% 10% 82% 19% 1,748 250 113 -799 -512 4,828 PAT Mar'22 64% Net interest income (NII) stood at Rs. 12,542 million during period under review, increased by 16%. Fee & Commission and Dividend Income increased by 29% and 86% respectively. Non Mark-up income reached at Rs. 4,080 million, increased by 7% Attributable to favorable SWAP curves (FX) income reached at Rs. 752 million in Mar 2022, increase of 206% (Mar 2020; Rs. 246 million) Profit after tax recorded at Rs.4,828 million; EPS stood at Rs. 4.22 per share (Mar 2021; Rs. 3.52) Administrative cost growth curtailed to 9% in Mar 2022; despite, increased inflation and continued investment towards technological transformation to cater the evolving needs of "Digital Age". PAT Mar'21 NII Non-Markup Non-Markup Income Expense Provision Taxation PAT Fall Rise Particulars Mar' 22 Mar 21 Growth Interest Income 39,062 Interest Expense Net Interest Income (NII) Non Markup Income Gross Income Non Markup Expense 26,521 23,774 12,980 104% 12,542 10,794 16% 4,080 3,830 7% • 16,622 14,624 14% 8,863 8,064 10% Profit Before Provisions 7,759 6,560 18% Provision Reversal (252) (139) 82% Profit Before Taxation 8,011 6,699 20% Taxation 3,183 2,671 19% Profit After Taxation (PAT) 4,828 4,029 20% Earnings Per Share (EPS) 4.22 3.52 20% 7/22#8A Investments Investments (Rs. in Billion) Mar' 22 Dec'21 Var. Growth Pakistan Investment Bonds 745,835 553,428 192,407 35% Market Treasury Bills 253,661 455,866 (202,205) -44% Listed and Unlisted Shares 17.758 17,636 122 1% TFCs, Bonds, Sukuks and Mutual Funds 50,961 45,915 5,046 11% Subsidiary 500 500 - 0% Investments at Cost 1,068,714 1,073,345 (4,631) 0% Provision for diminution in value of investments (2,039) (2,093) 54 -3% *Surplus on Revaluation of Securities (8,697) (6,757) (1,940) 29% Investments at Carrying Value 1,057,977 1,064,495 (6,517) -1% 5% 1% 2%4% *Surplus on revaluation of securities 24% Mar'22 Dec'21 Pakistan Investment Bonds (10,262) (8,801) 51% Mar 22 43% Dec 21 Market Treasury Bills (130) (1,045) Pakistan Investment Bonds Listed and Unlisted Shares 70% 3,068 2,496 Market Treasury Bills TFCs, Bonds, Sukuks and Mutual Funds (1,373) 593 Surplus on revaluation of securities (8,697) (6,757) Listed and Unlisted Shares TFCs, Bonds, Sukuks and Mutual Funds 8/22#9^ Advances & Asset Quality (Rs. in Billion) 666 638 7.8% 7.2% 6.8% 7.0% 6.4% 510 500 5.9% 454 4.6% 389 341 349 326 3.5% 289 285 262 3.2% 2.8% 2.0% 2.1% 2011 2012 2013 2014 2015 2016 2017 25 2018 Gross Advances ―NPL Ratio 86.4% 87.5% 86.6% 86.1% 94.6% 91.9% 20 92.6% 15 10 5 2011 2012 2013 2014 Provision Held 2019 2020 2021 Q1-2022 96.7% 96.3% 95.3% 93.7% 92.9% 2020 2021 Q1-2022 2015 2016 2017 2018 2019 NPL Specific Coverage Ratio Gross advances stood at Rs.638 billion (4%) (Industry advances; 2%1) Gross ADR ratio reached 45.0% (Industry Dec'21 Gross ADR: 50.4%) NPLs at 13.5 billion (0.8%) NPL Ratio 2.1% (0.07%); Industry Dec'21: 7.9% Specific NPL Coverage 92.9% (0.8%) & Overall NPL Coverage at 93.7%; Overall Industry Dec'21: 91.2% Key Lending Sectors; • Agriculture, Forestry and Hunting Power, gas, water & sanitary Financial Textile-Manufacture of made up & ready made garments Chemical & pharmaceutical 9/22#10A Deposits (Rs. in Billion) Particulars Mar' 22 Dec' 21 Var (%) Market Share: 6.9% Current 647 607 7% Industry Growth: -2.4% Saving 505 582 -13% Term 265 224 18% ABL CASA Mix: 81% Total Deposits 1,417 1,413 0.3% 1,413 1,417 1,217 1,049 985 883 1,189 1,152 805 1,062 735 668 608 868 809 515 400 690 617 485 522 413 356 289 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1-2022 Total Deposits CASA (Including Current Remunerative) 10/22#11A ^ Key Ratios & Channels Key Ratios Particulars Mar 22 Dec'21 Variance Return on Assets (%) 1.0% 1.0% 0.0% Return on Equity (Tier I) (%) 17.9% 16.5% 1.4% JAMMU AND Capital Adequacy Ratio (%) 22.4% 22.3% 0.1% KASHMIR Channels Mar' 22 Dec' 21 Growth Total Branches 1,429 1,429 Conventional 1,312 1,312 - Islamic 117 117 -O Pakista Total Automated Teller Machines (ATMs) 1,567 1,558 9 On-site 1,288 1,269 19 Off-site 274 284 (10) Mobile Banking Units 5 5 " ATM Network Uptime (%) 97.1% 96.6% 0.5% Digital Touchpoints 18 18 Digital vs Counter Transactions 67:33 65:35 2% Islamic Windows 110 110 11/22#12A Stock Market Data Pakistan Stock Exchange Code: ABL Bloomberg Code: ABL PA Shares Outstanding (mln): 1,145.07 Market Capitalization (Rs. bln): 99.564 Stock Price as at Mar 31: Rs.86.95 Period High/Low: 88.00/83.54 40.0% Allied Bank Limited (ABL) Stock Price vs Market - Trend 30.0% 20.0% 10.0% 0.0% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 -10.0% -20.0% -30.0% ABL % change Market % Change 18.00 Dividend Payout EPS vs PE Ratio 16.00 25,000 79% 51% 14.00 47% 69% 20,000 40% 45% 55% 58% 63% 65% 12.00 10.00 55% 15,000 8.00 9.51 9.46 6.00 7.64 7.76 10,000 5,000 7.14 6.79 4.00 5.42 5.44 2.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1-2022 (Annual zed) Profit After Tax (PAT) (Rs in Millions) Dividend as (%) of PAT 2015 2016 2017 2018 2019 2020 2021 Q1-2022 (Annualized) I Earnings per Share (EPS) Price Earnings (PE) Ratio Times 12/22#13^ Awards and Accolades Bank of the Year 2021 (Pakistan) - The Banker NFEH CSR Awards 2022 1.Corporate Governance 2.Green Energy Initiatives 3.Women Welfare Empowerment BEST BANK AWARDS 2021 ASIAMONE Asia Money-Best Bank for CSR 2021 ST BANK FOR CSR ASTAN WNING STREA CONTINUES PSHRM- 1.Best place to work "Winner" in Financial Services 2.Best place to work "Top 10 in Large Organization 36th Corporate Excellence Awards 2021 in Financial Category by Management Association of Pakistan CA AKISTAN Best Corporate & Sustainability Report Awards 2020 - 4th position for CMA Best Corporate & Sustainability Report Pakistan J.P. MORGAN RECOGNIZES Asset ASSET TRIPLE A- USTAINABL APITAL MARKET UNTRY AND REGIONAL AWAR Best Structured Finance Deal-Asset Triple A Country Awards 2021 TSPAWARDS TRESURICHANTINI POGA Momentum Award - Issuing Bank- ADB TSCFP Awards 2021 ALLIED B The 2021 U.S. Dollar Clearing Q Award for Outstandin Best-in-Class MT202 Best in Class MT202 STP Rate 98.91%-JPMorgan USD Clearing Quality Recognition Award Landy Cas Sua Chen by thangouts.com/sucheresset f Allied Bank GLOBAL DIVERSITY & INCLUSION BENO LADESH: Pro AWARDS 2021 Global Diversity & Inclusion Benchmarks Award 2021 - Best Progressive Bank in Leadership & Recruitment & Development 13/22#14A Corporate Governance & Ratings Entity Rating CGR PACRA AAA (Long Term) A1+ (Short Term) A very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments and not being significantly vulnerable to foreseeable events VIS Credit Rating Company • CGR-9++ (Corporate Governance Rating) • Very high level of corporate governance; the rating action takes into consideration the continued commitment of the board and management of the Bank to maintain a sound governance framework. . • Deposits Moody's B3/NP Rating reflects bank's stable deposits-based funding profile, high liquidity buffer and good earnings generating capacity. Outlook stable, constrained by the stable outlook on the sovereign rating. 14/22#15^ Annexures Annexure A Statement of Financial Position - Standalone Annexure B Statement of Financial Position - Consolidated Annexure C Income Statement - Standalone Annexure D Income Statement - Consolidated 15/22#16A Statement of Financial Position: Standalone Rs. in Million US$ in Million ASSETS Growth Mar'22 Dec'21 Variance Mar'22 Dec'21 Variance Cash and Balances with Banks 117,693 125,310 (7,617) 641 683 (42) -6% Lending to Fls 24,048 45,453 (21,405) 131 248 (117) -47% Investments - net 1,057,977 1,064,495 (6,518) 5,766 5,802 (36) -1% Advances - net 625,508 Operating fixed assets 81,849 Other Assets 51,769 652,890 80,871 41,138 (27,382) 3,409 3,558 (149) -4% 978 446 441 5 1% TOTAL ASSETS 1,958,844 2,010,156 10,631 (51,312) 282 224 58 26% 10,676 10,956 (280) -3% LIABILITIES Deposits 1,417,499 1,413,295 4,204 7,726 7,703 23 0.3% Borrowings Bills Payable Other Liabilities 352,523 12,194 47,698 420,006 (67,483) 1,921 2,289 (368) -16% 10,060 2,134 66 55 12 21% 39,551 8,147 260 216 44 21% TOTAL LIABILITIES 1,829,914 1,882,912 (52,998) 9,973 10,262 (289) -3% NET ASSETS 128,930 127,245 1,685 703 694 9 1% EQUITY AND RESERVES Share Capital 11,451 11,451 62 62 0% Reserves & Unapprop. Profit 99,170 96,255 2,915 541 525 16 3% Equity-Tier I 110,621 107,705 2,915 603 587 16 3% Total Equity 128,930 127,245 1,685 703 694 9 1% 16/22#17A Statement of Financial Position: Consolidated Rs. in Million ASSETS Mar' 22 Cash and Balances with Banks Lending to Fls Investments - net Advances - net Operating fixed assets Other Assets TOTAL ASSETS US$ in Million Growth Dec'21 Variance Mar' 22 Dec'21 Variance 117,698 24,048 125,304 (7,606) 641 683 (41) -6% 45,453 (21,405) 131 248 (117) -47% 1,059,807 1,066,390 (6,583) 5,776 5,812 (37) -1% 625,710 653,080 (27,370) 3,410 3,559 (149) -4% 82,174 81,227 947 448 443 5 1% 52,175 41,526 1,961,612 2,012,980 10,649 (51,368) 284 226 57 26% 10,691 10,971 (280) -3% LIABILITIES Deposits Borrowings Bills Payable 1,417,485 352,523 12,194 1,413,278 4,207 7,726 7,703 23 1% 420,006 (67,483) 1,921 2,289 (368) -16% 10,060 2,134 66 55 12 21% Other Liabilities 48,060 39,992 TOTAL LIABILITIES 1,830,262 1,883,336 8,068 (53,074) 262 218 44 20% 9,975 10,265 (289) -3% NET ASSETS 131,350 129,644 1,706 716 707 8 1% EQUITY AND RESERVES Share Capital 11,451 11,451 62 62 0% Reserves & Unapprop. Profit 101,544 98,606 2,938 553 537 16 3% Equity-Tier I 112,995 110,057 2,938 616 600 16 3% Total Equity 131,351 129,643 1,708 716 707 8 1% 17/22#18A Income Statement: Standalone Particulars Rs. in Million US$ in Million Growth Mar' 22 Mar'21 Variance Mar' 22 Mar'21 Variance Mark-up and Interest Income 39,062 23,774 15,288 213 130 83 64% Mark-up and Interest Expensed 26,521 12,980 13,540 145 71 74 104% Net Mark-up and interest Income 12,542 10,794 1,748 68 59 10 16% Capital Gain and Dividend 1,204 1,950 (746) 7 11 (4) -38% Fee based Income and Others 2,876 1,881 995 16 10 5 53% Non Mark-up and Interest Income 4,080 3,830 250 22 21 1 7% Gross Income 16,622 14,624 1,998 91 80 11 14% Human Resource Cost 3,977 3,631 346 22 20 2 10% Other Operating Cost 4,886 4,433 453 26 24 2 10% Total Operating Cost Operating Profit Provision Reversal Profit Before Tax Taxation Profit After Tax 8,863 8,064 799 48 44 4 10% 7,759 6,560 1,199 42 36 7 18% (252) (139) (113) (1) (1) 0 -82% 8,011 6,699 1,312 44 37 7 20% 3,183 2,670 513 17 15 3 19% 4,828 4,029 799 26 22 4 20% 18/22#19A Income Statement: Consolidated Particulars Mark-up and Interest Income Rs. in Million US$ in Million Growth Mar' 22 39,065 Mar'21 Variance 23,774 15.291 Mar' 22 Mar'21 Variance 213 130 83 64% Mark-up and Interest Expensed Net Mark-up and interest Income 26,524 12,981 13,543 145 71 74 104% 12,541 10,793 1,748 68 59 10 16% Capital Gain and Dividend 1,212 2,002 (790) 7 11 (4) -39% Fee based Income and Others 3,035 2,066 969 17 11 5 47% Non Mark-up and Interest Income 4,247 4,068 179 23 22 1 4% Gross Income 16,788 14,861 1,927 91 81 11 13% Human Resource Cost 4,077 3,716 362 22 20 2 10% Other Operating Cost 4,922 4,469 452 27 24 2 10% Total Operating Cost Operating Profit Provision Reversal Profit Before Tax Taxation Profit After Tax 8,999 8,185 814 49 45 4 10% 7,789 6,676 1,112 42 35 6 17% (253) (139) (114) (1) (1) (2) 82% 8,042 6,815 1,227 44 36 8 18% 3,192 2,703 490 17 15 2 18% 4,850 4,112 737 26 22 5 18% 19/22#20A 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. 20/22#21Contact Us 8 f in A Sikandar Ali Khan Unit Head Strategic Planning, Finance A Allied Bank +92-42-35880043 [email protected] Ext: 32637 2022 آپ کے دل میں ہمارا اکاؤنٹ#2222 THANK YOU