October 27, 2023 (MLN):Askari Bank Limited (PSX: AKBL) reported its profit and loss statement for the nine months of 2023, wherein the profit after tax clocked in at Rs14.59 billion [EPS: Rs10.06] compared to a profit of Rs10.76bn [EPS: Rs7.42] in the same period last year (SPLY).
The bank witnessed an increase of 39.19% YoY in its net interest income (NII) to stand at Rs40.52bn, compared to Rs29.11bn in SPLY. The surge in NII is due to a jump in interest-earning (Rs216.84bn), up by 97.39% YoY.
During the period under review, the bank’s total non-markup income also improved by 10.1% YoY to Rs10.02bn, owing to a significant jump in fee and commission income of 36.59% YoY to stand at Rs5.27bn.
Similarly, AKBL’s dividend income and gain on securities increased to Rs542.92m and Rs218.08m during the review period, compared to Rs298.3m in the SPLY.
Conversely, the foreign exchange fell by 18.18% YoY to stand at Rs3.64bn respectively.
Moving forward, the profit and loss statement shows AKBL incurred a provision expense of Rs690.38m in 9MCY23, compared to Rs180.74m reported in 9MCY22, reflecting an increase of 3.82x YoY.
On the expense side, the total non-markup expenses expanded by 26.37% YoY to Rs21.44bn in 9MCY23 compared to Rs16.96bn in 9MCY22.
The increase was attributed to a 26.77% YoY spike in operating expenses, rising from Rs16.5bn in 9MCY22 to Rs20.91bn in 9MCY23.
Additionally, the bank’s expenses related to the Workers' Welfare Fund went up during the review period. While other charges were reduced to Rs129.6m during the review period.
The bank paid Rs13.82bn on the tax front, 35.59% YoY higher than the amount paid in 9MCY22.
| Consolidated Financial Results for the nine months ended September 30, 2023 ('000 Rupees) | |||
|---|---|---|---|
| Sep-23 | Sep-22 | % Change | |
| Mark-up/return/interest earned | 216,840,112 | 109,853,918 | 97.39% |
| Mark-up/return/interest expensed | 176,321,242 | 80,743,779 | 118.37% |
| Net mark-up/interest income | 40,518,870 | 29,110,139 | 39.19% |
| NON-MARK-UP/INTEREST INCOME | |||
| Fee and commission income | 5,273,115 | 3,860,650 | 36.59% |
| Dividend income | 542,915 | 298,297 | 82.00% |
| Foreign exchange income | 3,636,087 | 4,442,492 | -18.15% |
| Income / (loss) from derivatives | – | – | |
| Gain on securities | 218,081 | 183,483 | 18.86% |
| Other income | 346,208 | 312,578 | 10.76% |
| Total non mark-up/interest income | 10,016,406 | 9,097,500 | 10.10% |
| Total Income | 50,535,276 | 38,207,639 | 32.26% |
| NON-MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | 20,911,141 | 16,495,930 | 26.77% |
| Workers' Welfare Fund | 398,110 | 301,754 | 31.93% |
| Other charges | 129,602 | 166,978 | -22.38% |
| Total non mark-up/interest expenses | 21,438,853 | 16,964,662 | 26.37% |
| Profit before provisions | 29,096,423 | 21,242,977 | 36.97% |
| Provisions and write offs – net | 690,377 | 180,736 | 281.98% |
| Extraordinary items/unusual items | – | – | |
| Profit before taxation | 28,406,046 | 21,062,241 | 34.87% |
| Taxation | (13,820,842) | (10,305,159) | 34.12% |
| Profit after taxation | 14,585,204 | 10,757,082 | 35.59% |
| Basic and diluted earnings per share | 10.06 | 7.42 | – |
AKBL and KSE-100 YTD Performance
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Posted on: 2023-10-27T11:32:55+05:00
