Bank Alfalah Limited (BAFL) is scheduled to hold its board meeting on Thursday, 26 February 2015 in UAE to announce its CY14 results. Our expectations of bank on unconsolidated basis are as follows.
Earning momentum to carry on
BAFL likely to show profit after tax of Rs 5.49 billion in CY14 (EPS: Rs 4.07) compared to Rs 4.67 billion last year (EPS: Rs 3.47), depicting rise of 18%. This is expected due to higher net interest income and rise in non interest income. In 4QCY14, we anticipate notable growth of 9% in earnings to clock in at Rs 1.48 billion (EPS: Rs 1.10) against Rs 1.36 billion (EPS: Rs 1.01) in 4QCY13. The corporate results are expected to be accompanied with cash dividend of Rs 2.50/share.
Net interest income to drive earnings
Net interest income is expected to increase by 28% to Rs 21.55 billion against Rs 16.89 billion in CY13 due to higher investments and switching to long term bonds. Interest income likely to hike surge by 25% to Rs 54.95 compared to Rs 43.96 billion in CY13 mainly due to rise in earnings assets and investments in PIBs. Conversely, interest expense to up by 23% to Rs 33.40 billion versus Rs 27.06 billion in CY13.
Non-funded Income would provide support
Non-Interest income is expected to surge by 4% to Rs 8.59 billion versus Rs 8.27 billion in CY13 mainly due to higher fee, commission & brokerage income, dividend income and income from dealing foreign currencies. On the other hand, provisions increase by 24% to Rs 1.30 billion compared to Rs 1.05 billion in CY13 due to rise in NPL.

Read More>>>

BAFL -CY14 Result Preview