company background image
BAFL

Bank AlfalahKASE:BAFL Stock Report

Last Price

PK₨35.77

Market Cap

PK₨63.6b

7D

-1.7%

1Y

-2.5%

Updated

23 Jan, 2022

Data

Company Financials +
BAFL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends5/6

BAFL Stock Overview

Bank Alfalah Limited provides banking and financial services to consumers, corporations, institutions, and governments in Pakistan, Bangladesh, the Asia Pacific, and the Middle East.

Bank Alfalah Competitors

MCB Bank

KASE:MCB

PK₨189.4b

Habib Bank

KASE:HBL

PK₨179.1b

United Bank

KASE:UBL

PK₨172.6b

Allied Bank

KASE:ABL

PK₨101.7b

Price History & Performance

Summary of all time highs, changes and price drops for Bank Alfalah
Historical stock prices
Current Share PricePK₨35.77
52 Week HighPK₨37.77
52 Week LowPK₨28.50
Beta0.71
1 Month Change4.04%
3 Month Change-2.67%
1 Year Change-2.51%
3 Year Change-26.55%
5 Year Change-9.55%
Change since IPO183.83%

Recent News & Updates

Shareholder Returns

BAFLPK BanksPK Market
7D-1.7%-1.4%-1.4%
1Y-2.5%-1.0%-9.8%

Return vs Industry: BAFL underperformed the PK Banks industry which returned -1% over the past year.

Return vs Market: BAFL exceeded the PK Market which returned -9.8% over the past year.

Price Volatility

Is BAFL's price volatile compared to industry and market?
BAFL volatility
BAFL Average Weekly Movement3.5%
Banks Industry Average Movement3.4%
Market Average Movement5.9%
10% most volatile stocks in PK Market9.1%
10% least volatile stocks in PK Market3.0%

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

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

About the Company

FoundedEmployeesCEOWebsite
199210,706Atif Bajwahttps://www.bankalfalah.com

Bank Alfalah Limited provides banking and financial services to consumers, corporations, institutions, and governments in Pakistan, Bangladesh, the Asia Pacific, and the Middle East. It operates through Retail Banking, Corporate Banking, Treasury, Digital Banking, Islamic Banking, International Operations, and Others segments. The company offers various deposit products, including current, savings, and foreign currency accounts, as well as term deposits; and auto, personal, and home loans; debit, credit, and travel currency cards; point-of-sale terminals; and home remittance services, as well as bancassurance solutions.

Bank Alfalah Fundamentals Summary

How do Bank Alfalah's earnings and revenue compare to its market cap?
BAFL fundamental statistics
Market CapPK₨63.57b
Earnings (TTM)PK₨12.89b
Revenue (TTM)PK₨56.52b

4.9x

P/E Ratio

0.7x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BAFL income statement (TTM)
RevenuePK₨56.52b
Cost of RevenuePK₨2.18b
Gross ProfitPK₨54.34b
ExpensesPK₨41.44b
EarningsPK₨12.89b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)7.26
Gross Margin96.14%
Net Profit Margin22.82%
Debt/Equity Ratio368.2%

How did BAFL perform over the long term?

See historical performance and comparison

Dividends

11.2%

Current Dividend Yield

55%

Payout Ratio

Valuation

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

4.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BAFL (PKR35.77) is trading above our estimate of fair value (PKR15.22)

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


Price To Earnings Ratio

PE vs Industry: BAFL is good value based on its PE Ratio (4.9x) compared to the PK Banks industry average (5.5x).

PE vs Market: BAFL is good value based on its PE Ratio (4.9x) compared to the PK market (6.6x).


Price to Earnings Growth Ratio

PEG Ratio: BAFL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

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


Future Growth

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

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAFL's forecast earnings growth (10.1% per year) is above the savings rate (10%).

Earnings vs Market: BAFL's earnings (10.1% per year) are forecast to grow faster than the PK market (7.4% per year).

High Growth Earnings: BAFL's earnings are forecast to grow, but not significantly.

Revenue vs Market: BAFL's revenue (9.8% per year) is forecast to grow faster than the PK market (8.9% per year).

High Growth Revenue: BAFL's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAFL's Return on Equity is forecast to be low in 3 years time (17.2%).


Past Performance

How has Bank Alfalah performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: BAFL's current net profit margins (22.8%) are lower than last year (23.1%).


Past Earnings Growth Analysis

Earnings Trend: BAFL's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: BAFL's earnings growth over the past year (5.6%) is below its 5-year average (9.9% per year).

Earnings vs Industry: BAFL earnings growth over the past year (5.6%) exceeded the Banks industry 3.4%.


Return on Equity

High ROE: BAFL's Return on Equity (13.7%) is considered low.


Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: BAFL's Assets to Equity ratio (16.8x) is moderate.

Allowance for Bad Loans: BAFL has a sufficient allowance for bad loans (101%).

Low Risk Liabilities: 70% of BAFL's liabilities are made up of primarily low risk sources of funding.

Loan Level: BAFL has an appropriate level of Loans to Assets ratio (43%).

Low Risk Deposits: BAFL's Loans to Deposits ratio (65%) is appropriate.

Level of Bad Loans: BAFL has a high level of bad loans (3.6%).


Dividend

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

11.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BAFL's dividend (11.18%) is higher than the bottom 25% of dividend payers in the PK market (3.21%).

High Dividend: BAFL's dividend (11.18%) is in the top 25% of dividend payers in the PK market (10.05%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.1%), BAFL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAFL's dividends in 3 years are forecast to be covered by earnings (58.3% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Atif Bajwa

10.25yrs

Tenure

Mr. Atif Aslam Bajwa serves as the Chief Executive Officer, President and Executive Director at Bank Alfalah Ltd. since February 19, 2020. Mr. Bajwa served as the President of Bank of Punjab from January 7...


Leadership Team

Experienced Management: BAFL's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: BAFL's board of directors are considered experienced (7 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.


Top Shareholders

Company Information

Bank Alfalah Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Bank Alfalah Limited
  • Ticker: BAFL
  • Exchange: KASE
  • Founded: 1992
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: PK₨63.569b
  • Shares outstanding: 1.78b
  • Website: https://www.bankalfalah.com

Number of Employees


Location

  • Bank Alfalah Limited
  • B.A. Building
  • I.I. Chundrigar Road
  • Karachi
  • 74000
  • Pakistan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 13:30
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.