Inside Financial Markets

Askari Bank Limited Attractive DY of 10%, upgrade to ‘Hold’

JS Research

We upgrade our rating for Askari Bank Limited (AKBL) by one notch to ‘Hold’ from ‘Sell’. Our Dec 2015 Target Price of Rs23 offers potential upside of 3% with a justified P/B of 1.08x. The stock currently trades at a 2015E P/B of 1.04x.

We flag the superior DY of 10% AKBL holds, which is one of the highest amongst the JS Universe.

While the bank’s forward 5-year Tier-I ROE (2016F-2020F) is expected to sustain at the levels of 14%, which is higher than the return generation levels of pre-acquisition by the Foundation group (10% during 2007- 2014), we believe the turn-around has been priced in by investors.

[embeddoc url=”” viewer=”google”]

Potential triggers to boost the bank’s ROE may be

(1) increase in consumer products’ market share,

(2) growth in Fee based income and

(3) increase in current account deposits in CASA.

Baqar Hussain

A Wannabe CFO, just had stepped in the corporate sector, willing to explore every aspect here and learn as mush as i can, awareness for those who dont, get the info where ever possible and stay up to date always.

The Canadian Securities Institute


CSI is part of Moody's Analytics Learning Solutions, which offers educational programs and credentials throughout the world.

Email Newsletter

Subscribe to receive inspiration, news, and ideas in your inbox.

Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)