August 12, 2021 (MLN): Askari Bank Limited (AKBL) recorded a net profit of Rs4.11 billion for the half year ended on June 30, 2021 as compared to Rs4.95bn in the corresponding period last year, showing a decline of 17% YoY.
This has taken the bank’s earning per share (EPS) to Rs3.26 during 1HCY21, against Rs3.93 in the same period last year (SPLY).
The decline in profitability is mainly attributable to the higher provsion charges.
Going by the financial statement sent to PSX today, AKBL’s aggregate net markup income stood at Rs15.78bn, registering a growth of 9.48% YoY while non-markup income inched up by 6.93% YoY.
This increase in non-markup income was primarily due to the notable surge in the bank’s fee and commission income (up by 34.07% YoY), dividend income (up by 58.14% YoY), foreign exchange income (up by 21.56% YoY), and the expansion in other income by 42.67% YoY.
To note, the significant augmentation in the bank’s fee income is attributable to the increased volume of retail and branch transactions post Covid-19 lockdown.
AKBL’s non-markup expenses augmented by 9.26% YoY during 1HCY21, to reach Rs10.92bn, against Rs9.99bn in SPLY, while capital gain declined by 43% YoY.
The bank also recognized net provisions of Rs2.78bn, jumped by 4x against the provisions of Rs644.31mn recorded in 2019, which has also contributed its due share in contracting bottom line.
During the period, AKBL paid Rs2.63bn in terms of taxation, while in 1HFY20, bank paid Rs3.18bn in the corresponding period last year.
|
Financial Results for Half Year ended June 30, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-21 |
Jun-20 |
% Change |
|
Mark-up/return/interest earned |
35,430,806 |
43,243,571 |
-18.07% |
|
Mark-up/return/interest expensed |
19,648,177 |
28,827,271 |
-31.84% |
|
Net mark-up/interest income |
15,782,629 |
14,416,300 |
9.48% |
|
NON MARK-UP/INTEREST INCOME |
|
|
|
|
Fee and commission income |
2,022,855 |
1,508,826 |
34.07% |
|
Dividend income |
193,479 |
122,347 |
58.14% |
|
Foreign exchange income |
1,439,460 |
1,184,196 |
21.56% |
|
Income / (loss) from derivatives |
– |
– |
– |
|
Gain on securities |
790,539 |
1,391,749 |
-43.20% |
|
Other income |
209,064 |
146,539 |
42.67% |
|
Total non mark-up/interest income |
4,655,397 |
4,353,657 |
6.93% |
|
Total Income |
20,438,026 |
18,769,957 |
8.89% |
|
NON MARK-UP/INTEREST EXPENSES |
|
|
|
|
Operating expenses |
10,889,920 |
9,951,824 |
9.43% |
|
Workers' Welfare Fund |
20,157 |
26,602 |
-24.23% |
|
Other charges |
5,611 |
11,854 |
-52.67% |
|
Total non mark-up/interest expenses |
10,915,688 |
9,990,280 |
9.26% |
|
Profit before provisions |
9,522,338 |
8,779,677 |
8.46% |
|
Provisions and write offs – net |
2,780,021 |
644,312 |
331.47% |
|
Extraordinary items/unusual items |
– |
– |
|
|
Profit before taxation |
6,742,317 |
8,135,365 |
-17.12% |
|
Taxation |
(2,630,921) |
(3,181,613) |
-17.31% |
|
Total profit after taxation |
4,111,396 |
4,953,752 |
-17.00% |
|
Basic and diluted earnings per share |
3.26 |
3.93 |
-17.05% |
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