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.
Consolidated Financial Results for the Quarter ended March 31, 2022 ('000 Rupees) | |||
|---|---|---|---|
| Mar-22 | Mar-21 | % Change |
Mark-up/return/interest earned | 26,748,571 | 17,066,665 | 56.73% |
Mark-up/return/interest expensed | 18,291,124 | 9,452,199 | 93.51% |
Net mark-up/interest income | 8,457,447 | 7,614,466 | 11.07% |
NON-MARK-UP/INTEREST INCOME |
|
|
|
Fee and commission income | 1,196,262 | 1,075,511 | 11.23% |
Dividend income | 105,064 | 87,108 | 20.61% |
Foreign exchange income | 1,023,293 | 650,856 | 57.22% |
Income / (loss) from derivatives | – | – | – |
Gain on securities | 90,187 | 742,443 | -87.85% |
Other income | 135,751 | 97,591 | 39.10% |
Total non-mark-up/interest income | 2,550,557 | 2,653,509 | -3.88% |
Total Income | 11,008,004 | 10,267,975 | 7.21% |
NON-MARK-UP/INTEREST EXPENSES |
|
|
|
Operating expenses | 4,911,074 | 5,904,074 | -16.82% |
Workers' Welfare Fund | 87,860 | 4,258 | 1963.41% |
Other charges | 80,540 | 4,196 | 1819.45% |
Total non-mark-up/interest expenses | 5,079,474 | 5,912,528 | -14.09% |
Profit before provisions | 5,928,530 | 4,355,447 | 36.12% |
Provisions and write offs – net | (172,018) | (170,260) | 1.03% |
Extraordinary items/unusual items | – | – |
|
Profit before taxation | 6,100,548 | 4,525,707 | 34.80% |
Taxation | (2,492,117) | (1,756,272) | 41.90% |
Total profit after taxation | 3,608,431 | 2,769,435 | 30.29% |
Basic and diluted earnings per share | 2.86 | 2.20 | 30.00% |
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