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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