Allied Bank (KASE:ABL) - Share price, News & Analysis

ABL fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	1/6
Financial Health	4/6
Dividends	3/6

ABL Stock Overview

Allied Bank Limited provides various banking products and services in Pakistan, the Middle East, and China.

Rewards

PE ratio (4.8x) is below the PK market (5.7x)

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Allied Bank Competitors

MCB Bank

KASE:MCB

PK₨163.3b

United Bank

KASE:UBL

PK₨160.0b

Habib Bank

KASE:HBL

PK₨148.1b

Bank AL Habib

KASE:BAHL

PK₨74.3b

Price History & Performance

Summary of all time highs, changes and price drops for Allied Bank
Historical stock prices
Current Share Price	PK₨76.00
52 Week High	PK₨91.99
52 Week Low	PK₨67.50
Beta	0.62
1 Month Change	-10.59%
3 Month Change	-15.49%
1 Year Change	10.55%
3 Year Change	-27.10%
5 Year Change	-22.45%
Change since IPO	140.10%

Shareholder Returns

	ABL	PK Banks	PK Market
7D	-2.6%	-1.9%	-1.8%
1Y	10.5%	-0.7%	-12.1%

Return vs Industry: ABL exceeded the PK Banks industry which returned 1% over the past year.

Return vs Market: ABL exceeded the PK Market which returned -9.9% over the past year.

Price Volatility

Is ABL's price volatile compared to industry and market?
ABL volatility
ABL Average Weekly Movement	3.1%
Banks Industry Average Movement	4.7%
Market Average Movement	5.8%
10% most volatile stocks in PK Market	8.8%
10% least volatile stocks in PK Market	3.6%

Stable Share Price: ABL is less volatile than 75% of PK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ABL's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1942	11,370	Aizid Gill	https://www.abl.com

Allied Bank Limited provides various banking products and services in Pakistan, the Middle East, and China. It operates through Corporate & Investment Banking, Trading and Sales, Commercial & Retail Banking, Islamic Banking, and Others segments. The company offers savings and term deposits; everyday accounts; transaction and business accounts; bancassurance services; remittance services; trade services; treasury services; cash management solutions; and car, home, SME, and agriculture financing services.

Allied Bank Fundamentals Summary

How do Allied Bank's earnings and revenue compare to its market cap?
ABL fundamental statistics
Market Cap	PK₨87.03b
Earnings (TTM)	PK₨18.24b
Revenue (TTM)	PK₨65.18b

4.8x

P/E Ratio

0.7x

P/B Ratio

Is ABL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABL income statement (TTM)
Revenue	PK₨65.18b
Cost of Revenue	PK₨1.26b
Gross Profit	PK₨63.92b
Other Expenses	PK₨45.68b
Earnings	PK₨18.24b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	15.93
Gross Margin	98.07%
Net Profit Margin	27.99%
Debt/Equity Ratio	268.9%

How did ABL perform over the long term?

See historical performance and comparison

Dividends

10.5%

Current Dividend Yield

50%

Payout Ratio

Valuation

Is Allied Bank undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

4.77x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: ABL (PKR76) is trading above our estimate of fair value (PKR34.85)

Significantly Below Fair Value: ABL is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: ABL's PE Ratio (4.8x) is in line with the PK Banks industry average.

PE vs Market: ABL is good value based on its PE Ratio (4.8x) compared to the PK market (5.7x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ABL's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: ABL's PB Ratio (0.7x) is in line with the PK Banks industry average.

Future Growth

How is Allied Bank forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.6%

Forecasted Banks industry annual growth in earnings

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ABL's forecast earnings growth is above the savings rate (10.2%).

Earnings vs Market: Insufficient data to determine if ABL's earnings are forecast to grow faster than the PK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if ABL's revenue is forecast to grow faster than the PK market.

High Growth Revenue: Insufficient data to determine if ABL's revenue is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if ABL's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Allied Bank performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

9.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ABL has a high level of non-cash earnings.

Growing Profit Margin: ABL's current net profit margins (28%) are lower than last year (29.9%).

Past Earnings Growth Analysis

Earnings Trend: ABL's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: ABL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ABL had negative earnings growth (-1.9%) over the past year, making it difficult to compare to the Banks industry average (11.6%).

Return on Equity

High ROE: ABL's Return on Equity (13.9%) is considered low.

Financial Health

How is Allied Bank's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

4/6

Financial Health Score 4/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: ABL's Assets to Equity ratio (14.9x) is moderate.

Allowance for Bad Loans: ABL has a low allowance for bad loans (94%).

Low Risk Liabilities: 77% of ABL's liabilities are made up of primarily low risk sources of funding.

Loan Level: ABL has an appropriate level of Loans to Assets ratio (32%).

Low Risk Deposits: ABL's Loans to Deposits ratio (44%) is appropriate.

Level of Bad Loans: ABL has a high level of bad loans (2.1%).

Dividend

What is Allied Bank current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

10.53%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ABL's dividend (10.53%) is higher than the bottom 25% of dividend payers in the PK market (3.66%).

High Dividend: ABL's dividend (10.53%) is low compared to the top 25% of dividend payers in the PK market (10.86%).

Stability and Growth of Payments

Stable Dividend: ABL's dividend payments have been volatile in the past 10 years.

Growing Dividend: ABL's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (50.2%), ABL's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.

Next Steps

Explore strong dividend paying companies in the Banks industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure

CEO

Aizid Gill

1.33yrs

Tenure

Mr. Aizid Razzaq Gill serves as President & Chief Executive Officer at Allied Bank Limited since January 01, 2021 and serves as Executive Director and also served as its Director until August 27, 2021. He...

Leadership Team

Experienced Management: ABL's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: ABL's board of directors are considered experienced (6.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31