AKBL’s quarterly profits up by 30% YoY

April 20, 2022 (MLN): Askari Bank Limited (AKBL) has posted consolidated net profits of Rs3.61 billion (EPS: Rs2.86) during the first quarter of the calendar year 2022, up by 30.29% YoY against the net profit of Rs2.77bn (EPS: Rs2.20) in the same period of CY21, led by a modest increase in net interest income and lower non-funded expenses.

During the period under review, the bank’s interest expenses soared by 93.5% YoY, whereas, interest income by 57% YoY. As a result, the bank’s net interest income (NII) observed an increase of 11.1% YoY to Rs8.46bn during 1QFY22 due to a higher policy rate.

On the other hand, the non-funded income (NFI) of the bank witnessed a marginal decline of 4% YoY to clock in at Rs2.55bn due to an 88% plunge in capital gains on securities despite an 11% YoY increase in fee and commission income and 57% YoY jump in foreign exchange income to Rs1.02bn during 1QCY22.

Notably, the bank witnessed a 14% decrease in non-funded expenses as operating expenses were down by 17% YoY to Rs4.9bn. While, it posted a provision reversal of Rs172mn, up by 1.03% YoY.

On the tax front, the effective tax rate stood at 41% from 39%, restricting the bank’s bottom-line growth.

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