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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