February 21, 2019 (MLN): Askari Bank Limited (AKBL)’s net income for the year ended December 2018 has registered noticeable declines as compared to last year’s earnings as its net income of Rs.4.4 billion stands 13.5% lower, with EPS at Rs.3.51.
The company faced a downturn in profits on account of meager increase in total income, which wasn’t large enough to cover the direct and indirect expenses of the bank.
In spite of the bank having to pay less taxes as compared to last year, it failed to pull up its financial earrings for the current year.
While the results are in line with the market’s expectation of a decline, the falloff recorded by Askari has exceeded the average market projection of a 3-5% decline.
The company has announced a final Cash Dividend for the year at Rs. 1 per share, i.e. 10%.
|
Profit and loss account for the year ended December 31 2018 (Rupees'000) |
|||
|---|---|---|---|
|
|
Dec-18 |
Dec-17 |
% Change |
|
Mark-up / return / interest earned |
43,669,883 |
36,267,220 |
20.41% |
|
Mark-up / return / interest expensed |
25,059,925 |
20,071,958 |
24.85% |
|
Net mark-up / interest income |
18,609,958 |
16,195,262 |
14.91% |
|
Non mark-up / interest income |
|
|
|
|
Fee and commission income |
3,116,070 |
2,706,794 |
15.12% |
|
Dividend income |
231,312 |
302,894 |
-23.63% |
|
Foreign exchange income |
1,596,027 |
843,032 |
89.32% |
|
Income / (loss) from derivatives |
|
|
|
|
Gain on securities |
260,103 |
2,063,043 |
-87.39% |
|
Other income |
418,081 |
200,341 |
108.68% |
|
Total non-markup / interest income |
5,621,593 |
6,116,104 |
-8.09% |
|
Total income |
24,231,551 |
22,311,366 |
8.61% |
|
Non mark-up / interest expenses |
|
|
|
|
Operating expenses |
16,240,514 |
14,948,796 |
8.64% |
|
Workers' welfare fund |
-540,060 |
169,833 |
|
|
Other charges |
191,067 |
23,568 |
710.71% |
|
Total non-markup / interest expenses |
15,891,521 |
15,142,197 |
4.95% |
|
Profit before provisions |
8,340,030 |
7,169,169 |
16.33% |
|
Provisions / (reversal of provisions) and write offs |
1,460,575 |
-1,176,432 |
|
|
Extraordinary / unusual items |
|
|
|
|
Profit before taxation |
6,879,455 |
8,345,601 |
-17.57% |
|
Taxation |
-2,448,177 |
-3,223,915 |
-24.06% |
|
Profit after taxation – continued operations |
4,431,278 |
5,121,686 |
-13.48% |
|
Profit after taxation – discontinued operations |
-2,659 |
6,611 |
|
|
Basic earnings per share |
3.51 |
4.06 |
-13.55% |
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