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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