Bank Alfalah Limited 1HCY15 Result Preview – Azee Research

Bank Alfalah Limited (BAFL) is scheduled to hold its board meeting on Tuesday, 18th August, 2015 to announce its 1HCY15 results. Our expectations of bank on unconsolidated basis are as follows.

Earning to show respectable growth of 36%: BAFL likely to show impressive growth of 36% as profit after tax to hike at Rs 3.54 billion in 1HCY15 (EPS: Rs 2.23) compared to Rs 2.61 billion same period last year (EPS: Rs 1.64). This is expected due to rise in net interest income and lower growth in administrative expenses.

Super tax to erode earning growth in 2QCY15: We anticipate bank to witnesses 21% decline in earnings as profit after taxation to clock at Rs 1.56 billion (EPS: Rs 0.98) in 2QCY15 against Rs 1.98 billion (EPS: Rs 1.25) in 1QCY15 due to lower non-funded income, sharp rise in provisions and higher effective taxation.

Net interest income likely to hike by 46%: Bank’s net interest income likely to increase by 46% to Rs 13.92 billion against Rs 9.56 billion in 1HCY14 mainly due to surge in earning assets and investments in PIBs. Interest income is expected to up by 29% to Rs 32.37 billion compared to Rs 25.03 billion in 1HCY14. While interest expense is expected to surge by 19% to Rs 18.45 billion compared to Rs 15.47 billion in 1HCY14 owing to growth in deposits.

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