Askari Bank’s net profit growth stays flat in 1QCY20

April 22, 2020 (MLN): Askari Bank Limited (AKBL) has unveiled its financial results for the 1st  quarter ended March 31, 2020. As per results, the bank has posted its net profits of Rs 1.86 billion, up by only 1.47% YoY against net profits of Rs 1.83 billion of the corresponding period of last year.

The slender increase in profitability was due to a rise in non-funded income (NFI), up by 41% YoY on the back of capital gains.  

The bank’s interest income rose 51.8%YoY at Rs 21.65 billion in the first quarter of CY20 but a greater percentage increase in interest expense by 85% YoY restricted the growth in bank’s net interest income (NII) to 2% YoY during the said period.

During the period under review, non-funded income (NFI) of the bank jumped up by 41% YoY mainly on account of capital gains ( 16 times higher than YoY) despite loss in FX income.

However, non-interest expenses of the bank surged by 12% YoY, limiting the favorable impact of NFI on the bank’s net earnings. In the 1QCY20, the bank paid taxes worth Rs 4.66 billion, down by 9.35% YoY.

AKBL’s basic and diluted earnings per share have been reported at Rs 1.48 per share while those recorded last year were Rs 1.46 per share.

 

Financial Results for the quarter ended March 31, 2020 ('000 Rupees)

 

Mar-20

Mar-19

% Change

Mark-up/return/interest earned

 21,652,259

 14,261,858

51.82%

Mark-up/return/interest expensed

 15,811,073

 8,543,106

85.07%

Net mark-up/interest income

 5,841,186

 5,718,752

2.14%

NON-MARK-UP/INTEREST INCOME

 

 

 

Fee and commission income

 857,090

 844,414

1.50%

Dividend income

 64,561

 57,225

12.82%

Foreign exchange income

 377,513

 397,422

-5.01%

Income / (loss) from derivatives

 –  

 –  

Gain on securities

 565,541

 34,279

1549.82%

Other income

 81,675

 49,269

65.77%

Total non mark-up/interest income

 1,946,380

 1,382,609

40.78%

Total Income

 7,787,566

 7,101,361

9.66%

NON MARK-UP/INTEREST EXPENSES

 

 

 

Operating expenses

 4,766,793

 4,274,441

11.52%

Workers' Welfare Fund

 45,000

 15,508

190.17%

Other charges

 221

 22,209

-99.00%

Total non mark-up/interest expenses

 4,812,014

 4,312,158

11.59%

Profit before provisions

 2,975,552

 2,789,203

6.68%

Provisions and write offs – net

 (69,930)

 (348,023)

-79.91%

Extraordinary items/unusual items

 –  

 –  

 

Profit before taxation

 3,045,482

 3,137,226

-2.92%

Taxation

 (1,185,731)

 (1,308,061)

-9.35%

Profit after taxation – continued operations

 1,859,751

 1,829,165

1.67%

Profit after taxation – discontinued operations

 6,108

 9,616

 

Total profit after taxation

 1,865,859

 1,838,781

1.47%

Basic earnings per share

 1.48

 1.46

1.37%

 

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Posted on: 2020-04-22T12:07:00+05:00

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