Allied Bank Limited (ABL): Ideal defensive play in uncertain times – By Foundation Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Allied bank (ABL PA) continues to operate as a conservative deposit franchise, but the same is it&rsquo;s strength as it lowers asset contamination risk. Furthermore, lowest CA contribution (in top 5) should allow the bank to further curtail funding cost by facelift of its retail presence. Lastly, we believe 22% CAR is more than sufficient to sequentially increase payout.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Tier-1 ROEs are to sustain around 19% and see CY17/18 Tier-1 PB of 1.2/1.1x as unjustifiably low. Especially, when accompanied by an attractive CY17/18 DY of 8.5/9.4%. Our Jun-18 TP of Rs113.3 implies an upside of 33%.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:...