Askari Bank posts 54% increase in net profits with a cash dividend of Rs 3/sh

MG News | February 15, 2021 at 02:46 PM GMT+05:00

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February 15, 2021 (MLN): Askari Bank Limited (AKBL) wrapped CY20 with a final cash dividend of Rs 3 per share i.e. 30%. The bank’s net profits soared by 54% YoY to Rs 10.85 billion compared to the profits of Rs 7 billion in CY19.

The translated into AKBL’s earnings per share which grew by the same percentage from Rs 5.58/sh to Rs 8.61/sh.

During the year, Bank’s aggregate net markup income stood at Rs.30.27 billion, registering a notable growth of 36.7% YoY led by effective and timely asset and liability management decisions amidst a sharp decline in interest rates and jump in average earning assets.

Non-markup income surged by 32% YoY with a strong contribution from capital gains realized (Rs 2.5 billion) due to favorable movements in money and stock markets.

Furthermore, Fee-based income grew by 9.2% due to increased volume of retail and branch transactions post Covid-19 lockdown, and income from FX dealing mounted by 6.6% YoY, which further strengthened Bank’s profitability.

Non-markup expenses increased by 10.92% YoY while the cost to income ratio improved from 62% to 51% in CY20.

The bank also recognized net provisions of Rs.1.97 billion, increased by more than double against the provisions of Rs 773.27 million recorded in 2019, which put a limit on the Bank’s profitability.

Consolidated Financial Results for the Year ended December 31, 2020 ('000 Rupees)
	Dec-20	Dec-19	% Change
Mark-up/return/interest earned	77,335,131	71,712,211	7.84%
Mark-up/return/interest expensed	47,059,350	49,568,032	-5.06%
Net mark-up/interest income	30,275,781	22,144,179	36.72%
NON-MARK-UP/INTEREST INCOME
Fee and commission income	3,991,285	3,654,417	9.22%
Dividend income	273,524	276,572	-1.10%
Foreign exchange income	2,673,493	2,507,707	6.61%
Income / (loss) from derivatives	-	-	-
Gain on securities	2,555,400	739,918	245.36%
Other income	349,438	266,102	31.32%
Total non-mark-up/interest income	9,843,140	7,444,716	32.22%
Total Income	40,118,921	29,588,895	35.59%
NON-MARK-UP/INTEREST EXPENSES
Operating expenses	20,217,974	18,272,591	10.65%
Workers' Welfare Fund	42,982	42,117	2.05%
Other charges	48,149	99,947	-51.83%
Total non-mark-up/interest expenses	20,309,105	18,414,655	10.29%
Profit before provisions	19,809,816	11,174,240	77.28%
Provisions and write offs - net	1,974,747	773,275	155.37%
Extraordinary items/unusual items	-	-
Profit before taxation	17,835,069	10,400,965	71.48%
Taxation	(6,978,072)	(3,368,395)	107.16%
Total profit after taxation	10,856,997	7,032,570	54.38%
Basic and diluted earnings per share	8.61	5.58	54.30%

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