FIRST ASIA SECURITIES
PakistanSri LankaPREV
EquitiesFixed Income
DATA AS OF 13 JUL 2026 · EOD

BAHL

Bank Al Habib
BANKS

LAST · PKR

176.11
+0.14 ▲ +0.08%
P/E 6.5× · YIELD 8.8% · ROE 18.2%

52W RANGE

142.06202.81
56% OF RANGE · YTD −3.0%
01 / BAHL — 1 YearAS OF 13 JUL 2026 · EOD
PERIOD 1Y · 250 SESSIONS▲
The Call
BUY+16%
205.00PKR · 12-MO
7.4× FY26E

Steady compounding; partial re-rate.

Risks to our view
02 /

FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD

Pristine asset quality, an 8.8% yield, six times earnings

  1. 01

    Buy, PKR 205 target: BAHL trades at 6.5× with an 18% ROE and an 8.8% yield — value-and-income from the cleanest balance sheet among the banks.

  2. 02

    Conservative, family-sponsored management delivers pristine asset quality and steady branch-led growth.

  3. 03

    The 8.8% yield pays you well to hold while the multiple re-rates.

  4. 04

    A modest move to ~7.4× FY26E gets to PKR 205; clean books rarely stay this cheap.

Where we differ from the street
Street viewOur viewWe change our mind if
Lower free float and conservatism cap the multiple.Liquidity explains some discount, not 6.5× on pristine books; this is mispricing.Asset quality deteriorating from the current base.
Conservatism leaves growth on the table.Through-cycle, low credit costs and steady compounding beat aggressive lending.A strategy shift toward riskier lending.
Same rate sensitivity as peers.Branch-led low-cost deposits cushion the give-back; asset quality protects credit costs.Sharp NIM compression with rising infection.

— FIRST ASIA SECURITIES RESEARCH · NOT INVESTMENT ADVICE