BAFL announced earnings (PAT) today for 9MCY22 at PKR 14.3bn (EPS: PKR 8.03), depicting an increase of 33% YoY | 48% QoQ (3QCY22 EPS: PKR 3.10). This jump in overall earnings was mainly on the back of higher total income. The bank announced no dividend along with 3Q results.

Result Highlights

· Net Interest Income of the bank settled at PKR 21.8bn during 3QCY22, increasing 82% YoY and 22% QoQ. With this, total NII for 9MCY22 went up to PKR 53.97bn, marking a 58% YoY jump. Interest earned saw a jump of 32% QoQ depicting an impact of asset repricing in the out-going quarter.

· NFI depicted an increase of 77% YoY during 3QCY22 taking 9MCY22’s total to PKR 18.2bn (51% YoY). This jump in 3QCY22 is primarily due to a huge FX gains of PKR 3.4bn (+224% YoY) on the back of PKR depreciation. In addition, fee and commission income posted a 43% YoY, clocking-in at PKR 2.9bn during the out-going quarter. On the other hand, bank booked loss on securities in 3QCY22 of PKR 43.9mn against a gain of PKR 362mn recorded in same period last year.

· Provisioning for the bank clocked-in at PKR 8.13bn during 9MCY22 (3QCY22: PKR 4.1bn) depicting a significant jump of 473% on YoY basis.

· The bank’s OPEX increased 32% YoY in 9MCY22 clocking-in at PKR 35.9bn (3QCY22: PKR 13.63bn, 45% YoY | 16% QoQ). With this, Cost/Income stood at 47.4% in 3QCY22 against 59% same period last year.

· Effective tax rate was set at 49% during 3QCY22 compared to 60% last quarter.

Courtesy – AHL Research