#1A Allied Bank 0 Financial Presentation - Dec 2022 10001)#2A Contents ABL at Glance & Economic Highlights Investments Deposits Stock Market Information Annexures 3-4 5-7 8 9 10 11 12 13 14-18 Major Highlights Balance Sheet Income Statement Advances & Asset Quality Key Ratios & Channels Ratings#3A ABL at Glance ATMs:1,572 On-site: 1,296 Off-site: 271 MBU: 5 Rep Offices: 2 UAE-Dubai China-Beijing Overseas Branches: 2 Bahrain WBU Export Processing Zone Domestic Branches: 1,451 Conventional: 1,327 Islamic: 117 Entity Credit Rating Long Term: AAA Short Term: A1+ Subsidiary ABL Asset Management Co. Ltd. Holding 100% Corporate Governance Rating CGR 9++ Digital Touch Points 18 Digital: 7 3/21#4A Economic Highlights SBP Reserves and Exchange Rate US$/PKR 25,000 239 219 228 224 226 221 3,500 205 198 20,000 183 186 177 177 177 3,000 2,500 15,000 2,000 10,000 5,000 1,500 1,000 500 0 0 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Dec-21 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Dec-21 SBP Reserves (US$ million) Exchange Rate US$/PKR Export & Import- US$ Million Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Exports (Goods & Services US$ Min) ■Imports (Goods & Services US$ MIn) TD (500) (1,000) (1,500) (2,000) (2,500) (3,000) (3,500) (4,000) (4,500) (5,000) Workers Remmittances- US$ Million Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 2021-22 ■2020-21 Trade Deficit & Current Account Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Trade Deficit (US$ Mn) Oct-22 Nov-22 Dec-22 Current Account (US$ Min) CAD (500) (1,000) (1,500) (2,000) (2,500) (3,000) 4/21#5A Highlights Financial Position (Assets) 30% 6% 33% -30% 193 41 59 -51 2,010 (Rs. in Billion) 2,251 Total Assets reached at Rs. 2,251 billion (increased by 12%). Dec-21 Cash, Bank Investments Advances Balances & Lending to Operating Fixed and Other Assets Fls Total Assets Fall Rise Dec-22 Net Advances reached at Rs. 846 billion as on Dec 31, 2022; Increased by 30% as against Rs. 653 billion as on Dec 31, 2021. ABL Industry Particulars Dec' 22 Dec'21 Cash, Bank Balance & Lending to FI's 120 Growth Growth 171 -30% -15% Investments - Net 1,123 1,064 6% 27% Advances - Net 846 653 30% 18% Operating fixed and other assets 163 122 33% 37% Total Assets 2,251 2,010 12% 20% Net Investments reached at Rs. 1,123 billion (increased by 6%). 5/21#6^ Highlights Financial Position (Liabilities) A (Rs. in Billion) 26% 8% 42% 110 109 20 1,883 2,123 Total Liabilities stood at Rs. 2,123 billion (increased by 13%) Dec-21 Borrowings Deposits Bills Payable & Other Liab. Total Liabilities Fall Rise Dec-22 CASA Dec'22 Stood at: 79% Deposits aggregated to reach at Rs. 1,522 billion; increased by 8% as compared to Industry growth of 7%. Total Equity stood at Rs. 127.8 billion; increased by 0.4% (Dec 21: Rs. 127.2 billion) CAR: 19.74%; as at Dec 2022 (Dec 21: 22.32%); Industry CAR Sep 22 :16.6% Particulars Dec' 22 Dec'21 ABL Industry Growth Growth Borrowings 530 420 26% 72% Deposits and Other Accounts 1,522 1,413 8% 7% Bills Payable & Other Liabilities 70 50 42% 51% Total Liabilities 2,123 1,883 13% 20% 6/21#730% 21% -68% 17,314 21,132 4,737 -549 PAT Dec'21 NII Non-Markup Income -7,084 Non-Markup Provision Expense ^ Highlights Income Statement A 46% (Rs. in Million) 21,194 Net Interest Income (NII) stood at Rs. 66,719 million during period under review; increased by 46%. Fee & Commission and Dividend Income increased by 20% and 44% respectively. Non-Markup Income reached at Rs. 20,675 million; increased by 30%. Foreign Exchange income reached at Rs. 7,948 million in Dec 2022 (Dec 2021; Rs. 1,973 million). 130% -14,356 Taxation PAT Dec'22 PAT Fall Rise Particulars Interest Income Dec' 22 215,469 Profit Before Provisions Interest Expense Net Interest Income (NII) Non Markup Income Gross Income Non Markup Expense Provision Reversal 148,750 Dec' 21 118,649 73,062 Growth 82% 104% Profit before Tax reached at Rs. 46,626 million; increased by 64% 66,719 45,587 46% 20,675 15,938 30% 87,394 61,525 42% 41,030 33,946 21% 46,364 27,580 68% Profit after Tax recorded at Rs. 21,194 million; EPS stood at Rs. 18.51 per share (Dec 2021; Rs. 15.12) (262) (811) -68% Profit Before Taxation 46,626 28,391 64% Taxation 25,432 11,077 130% Profit After Taxation (PAT) 21,194 17,314 22% Earnings Per Share (EPS) 18.51 15.12 22% 7/21#8A Investments Investments (Rs. in Million) Dec' 22 Dec'21 Var. Growth Pakistan Investment Bonds 973,128 553,428 419,700 76% Market Treasury Bills 100,237 455,866 (355,630) -78% Listed and Unlisted Shares 18,644 17,636 1,009 6% TFCs, Bonds, Sukuks and Mutual Funds 64,744 45,915 18,829 41% Subsidiary 500 500 0% Investments at Cost 1,157,252 1,073,345 83,907 8% Provision for diminution in value of investments *Surplus/ (Defiict) on Revaluation of Securities Investments at Carrying Value (2,322) (2,093) (228) 11% (31,814) (6,757) (25,057) 371% 1,123,117 1,064,495 58,622 6% 5% 2% 9% 2%4% *Surplus/ (Deficit) on revaluation of securities Dec'22 Dec'21 Pakistan Investment Bonds (19,876) (8,801) Market Treasury Bills (971) (1,045) 51% 43% Dec 21 Dec 22 Listed and Unlisted Shares 573 2,496 Pakistan Investment Bonds TFCs, Bonds, Sukuks and Mutual Funds (11,541) 593 Market Treasury Bills 84% Surplus/ (Deficit) on revaluation of securities (31,814) (6,757) Listed and Unlisted Shares TFCs, Bonds, Sukuks and Mutual Funds 8/21#9^ Advances & Asset Quality (Rs. in Billion) 7.80% 7.20% 6.80% 7.00% 6.40% 5.85% 666 857 4.64% 3.54% 454 510 500 389 3.17% 326 341 349 2.78% 289 285 262 2.04% 1.53% 2019 2020 2021 2022 NPL Ratio 2011 2012 2013 2014 2015 2016 2017 20 18 Gross Advances 25 86.4% 87.5% 86.6% 86.1% 94.6% 91.9% 20 92.6% 15 10 5 96.7% 95.3% 96.3% 93.7% Gross advances stood at Rs. 857 billion (29%) (Industry advances; 17%↑) Gross ADR ratio reached 56.3% (Industry Dec'22 Gross ADR: 53.0%) NPLs at 13.1 billion (4%↓) NPL Ratio 1.53% (0.51%); Industry Sep'22: 7.6% Specific NPL Coverage 89.6% (4.2%) & Overall NPL Coverage at 90.4%; Overall Industry Sep'22: 91.9% Key Lending sectors: Non-Banking Financial Institution (NBFIs) 89.6% • Non-Financial Public Sector (NFPSE) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Provision Held NPL Specific Coverage Ratio Enterprises Government (Including Govt. Trusts & Corporate Bodies Textiles Chemicals, pharmaceutical & Petroleum 9/21#10A Deposits (Rs. in Billion) Particulars Dec' 22 Dec' 21 Var (%) Market Share: 6.8% Current 609 607 0.3% Saving 592 582 1.7% Industry Growth: 7.1% Term 321 224 43% Total Deposits 1,522 1,413 8% ABL CASA Mix: 79% 1,522 1,413 1,217 1,049 985 1,189 1,201 883 805 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 2022 Total Deposits CASA (Including Current Remunerative) 10/21#11A ^ Key Ratios & Channels Key Ratios Pakista JAMMU AND KASHMIR Particulars Dec'22 Dec'21 Variance Return on Assets (%) 1.0% 1.0% 0.0% Return on Equity (Tier I) (%) 18.4% 16.5% 1.9% Capital Adequacy Ratio (%) 19.7% 22.3% -2.6% Channels Dec' 22 Dec' 21 Growth Total Branches 1,453 1,429 24 Conventional 1,336 1,312 24 Islamic 117 117 Total Automated Teller Machines (ATMs) 1,572 1,558 14 On-site 1,296 1,269 27 Off-site 271 284 (13) Mobile Banking Units 5 5 ATM Network Uptime (%) 95.86% 96.65% -0.79% Digital Touchpoints 18 18 Digital vs Counter Transactions 74:26 65:35 9% Islamic Windows 135 110 25 11/21#12A Stock Market Data Pakistan Stock Exchange Code: ABL Bloomberg Code: ABL PA Shares Outstanding (mln): 1,145.07 Market Capitalization (Rs. bln): 73.250 Stock Price as at Dec 30, 22: Rs.63.97 Period High/Low: 91.43/61.90 15.0% 10.0% -10.0% -15.0% Allied Bank Limited (ABL) Stock Price vs Market - Trend 5.0% 0.0% Jan-22 Feb-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 -5.0% -20.0% -25.0% -30.0% ABL % change Market % Change 20.00 Dividend Payout EPS vs PE Ratio 18.00 25,000 79% 16.00 43% 69% 14.00 20,000 63% 65% 51% 55% 40% 45% 55% 58% 12.00 10.00 15,000 8.00 9.51 9.46 10,000 6.00 7.64 7.76 7.14 4.00 5.42 5.44 5,000 2.00 3.46 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 I Profit After Tax (PAT) (Rs in Millions) Dividend as (%) of PAT 2015 2016 2017 2018 2019 2020 2021 2022 Earnings per Share (EPS) Price Earnings (PE) Ratio - Times 12/21#13A Corporate Governance & Ratings Entity Rating CGR PACRA Deposits 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. • Moody's . Caa1/NP • This rating actions follows Moody's decision to downgrade sovereign's issuer and senior unsecured debt ratings to Caa1, as there is high credit linkages b/t bank's balance sheet and sovereign credit risk • Outlook Negative, constrained by the Negative outlook on the sovereign rating. 13/21#14^ 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 14/21#15A Statement of Financial Position: Standalone Rs. in Million US$ in Million ASSETS Growth Dec'22 Dec'21 Variance Dec'22 Dec'21 Variance Cash and Balances with Banks Lending to Fls 91,353 28,222 125,310 (33,957) 403 553 (150) -27% 45,453 (17,231) 125 201 (76) -38% Investments - net Advances - net Operating fixed assets Other Assets 1,123,117 845,640 84,442 78,198 1,064,495 58,622 4,960 4,701 259 6% 652,890 192,750 3,735 2,883 852 30% 80,871 3,571 373 357 16 4% 41,138 37,060 345 182 163 90% TOTAL ASSETS 2,250,973 2,010,156 240,817 9,941 8,878 1,064 12% LIABILITIES Deposits Borrowings Bills Payable Other Liabilities 1,522,297 530,414 14,160 56,290 1,413,295 109,002 6,723 6,242 481 7.7% 420,006 110,408 2,342 1,855 488 26% 10,060 4,100 63 44 18 41% 39,551 TOTAL LIABILITIES 2,123,161 1,882,911 16,739 240,249 249 175 74 42% 9,377 8,316 1,061 13% NET ASSETS 127,811 127,245 566 564 561 3 0.4% EQUITY AND RESERVES Share Capital 11,451 11,451 51 51 0% Reserves & Unapprop. Profit 111,088 96,255 14,833 491 425 66 15% Equity-Tier I 122,539 107,705 14,833 541 476 66 14% Total Equity 127,811 127,245 566 564 561 4 0.4% 15/21#16A Statement of Financial Position: Consolidated Rs. in Million ASSETS Cash and Balances with Banks Lending to Fls Investments - net Advances - net Operating fixed assets Other Assets TOTAL ASSETS US$ in Million Growth Dec'22 Dec'21 Variance Dec'22 Dec'21 Variance 91,344 125,304 (33,960) 403 553 (150) -27% 28,222 45,453 (17,231) 125 201 (76) -38% 1,126,717 1,066,390 60,327 4,976 4,710 265 6% 844,219 653,080 191,139 3,728 2,884 844 29% 84,797 81,227 3,570 374 359 16 4% 78,574 41,526 37,048 347 183 163 89% 2,253,873 2,012,979 240,893 9,954 8,890 1,064 12% LIABILITIES Deposits Borrowings Bills Payable Other Liabilities 1,522,276 530,414 14,160 56,758 1,413,278 108,998 6,723 6,242 481 8% 420,006 110,408 2,342 1,855 488 26% 10,060 4,100 63 44 18 41% TOTAL LIABILITIES 2,123,608 39,992 1,883,336 16,766 240,272 251 177 74 42% 9,379 8,317 1,061 13% NET ASSETS 130,264 129,643 621 575 573 2 0.5% EQUITY AND RESERVES Share Capital 11,451 11,451 51 51 0% Reserves & Unapprop. Profit 113,494 98,606 14,888 501 435 66 15% Equity-Tier I 124,945 110,057 14,888 552 486 66 14% Total Equity 130,264 129,643 621 575 573 2 0.5% 16/21#17A Income Statement: Standalone Particulars Rs. in Million US$ in Million Growth Dec'22 Dec'21 Variance Dec'22 Dec'21 Variance Mark-up and Interest Income 215,469 118,649 96,820 952 524 428 82% Mark-up and Interest Expensed 148,750 73,062 75,687 657 323 334 104% Net Mark-up and interest Income 66,719 45,587 21,132 295 201 94 46% Capital Gain and Dividend 4,487 6,485 (1,998) 20 29 (9) -31% Fee based Income and Others 16,188 9,453 6,735 71 42 30 71% Non Mark-up and Interest Income 20,675 15,938 4,737 91 70 21 30% Gross Income 87,394 61,525 25,869 386 272 114 42% Human Resource Cost 17,193 15,253 1,940 76 67 9 13% Other Operating Cost 23,837 18,693 5,144 104 83 23 28% Total Operating Cost Operating Profit Provision Reversal Profit Before Tax Taxation Profit After Tax 41,030 33,946 7,084 180 150 31 21% 46,364 27,579 18,785 205 122 83 68% (262) (811) 549 (1) (4) 3 68% 46,626 28,391 18,235 206 126 80 64% 25,432 11,077 14,355 112 49 63 130% 21,194 17,314 3,880 94 77 16 22% 17/21#18A Income Statement: Consolidated Particulars Rs. in Million US$ in Million Growth Dec'22 Dec'21 Variance Dec'22 Dec'21 Variance Mark-up and Interest Income 215,478 118,654 96,824 952 524 428 82% Mark-up and Interest Expensed Net Mark-up and interest Income 148,768 73,092 75,676 657 323 334 104% 66,710 45,562 21,148 295 201 93 46% Capital Gain and Dividend 4,439 6,627 (2,188) 20 29 (10) -33% Fee based Income and Others 16,964 10,135 6,829 75 45 30 67% Non Mark-up and Interest Income 21,403 16,762 4,641 95 74 20 28% Gross Income 88,112 62,324 25,788 389 275 114 41% Human Resource Cost 17,589 15,612 1,977 78 69 9 13% Other Operating Cost 24,003 18,838 5,165 106 83 23 27% Total Operating Cost Operating Profit Provision Reversal Profit Before Tax Taxation Profit After Tax 41,591 34,450 7,141 184 152 32 21% 46,521 27,874 18,646 205 123 81 67% (261) (811) 550 (1) (4) 3 -68% 46,782 28,685 18,097 207 127 80 63% 25,534 11,182 14,354 113 49 63 128% 21,247 17,503 3,742 94 77 18 21% 18/21#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 which are based on management's current expectations or beliefs as well as assumptions made based on information currently available to management. The information presented is subject to change without notice. 19/21#20f in A A Allied Bank Contact Us 8 Sikandar Ali Khan Unit Head Strategic Planning, Finance +92-42-35880043 [email protected] Ext: 32637 20/21 آپ کے دل میں ہمارا اکاؤنٹ 441#2121 THANK YOU