Askari Bank’s net profits grow by 59% YoY on net interest income

August 13, 2020 (MLN): Askari Bank Limited has unveiled its financial results for the 1HCY20 ended June 30, 2020.  As per results, the bank has posted its net profits of Rs 4.97 billion (EPS: Rs 3.94), showing an increase of 58.75 % against net profits of Rs 3.13 billion (EPS: Rs 2.48) of the same period last year.

The increase in profitability of the bank was mainly attributable to increased Net interest income (NII).

The bank’s net interest income went up by 33% YoY to stand at Rs 14.41 billion in 1HCY20 on a back of repricing of deposits to lower rate with policy rate decline, as per the research of Darson.

During the period under review, increased gains on securities by 37 times YoY pushed up the bank’s non-funded income (NFI) by 28.47% YoY.

The bank’s operating expenses increased by 13.63% YoY to Rs 9.95 billion, along with a 54% increase in tax expense restricted the bank’s profits.

Financial Results for the half-year ended June 30, 2020 ('000 Rupees)

 

Jun-20

Jun-19

% Change

Mark-up/return/interest earned

 42,457,549

 30,206,700

40.56%

Mark-up/return/interest expensed

 28,041,243

 19,350,386

44.91%

Net mark-up/interest income

 14,416,306

 10,856,314

32.79%

NON-MARK-UP/INTEREST INCOME

 

 

 

Fee and commission income

 1,508,826

 1,813,091

-16.78%

Dividend income

 122,347

 146,286

-16.36%

Foreign exchange income

 1,184,196

 1,242,423

-4.69%

Income / (loss) from derivatives

 –  

 –  

Gain on securities

 1,391,749

 37,310

3630.23%

Other income

 146,539

 149,766

-2.15%

Total non-mark-up/interest income

 4,353,657

 3,388,876

28.47%

Total Income

 18,769,963

 14,245,190

31.76%

NON-MARK-UP/INTEREST EXPENSES

 

 

 

Operating expenses

 9,950,703

 8,757,364

13.63%

Workers' Welfare Fund

 26,602

 31,042

-14.30%

Other charges

 11,854

 32,908

-63.98%

Total non-mark-up/interest expenses

 9,989,159

 8,821,314

13.24%

Profit before provisions

 8,780,804

 5,423,876

61.89%

Provisions and write offs – net

 644,312

 238,736

169.88%

Extraordinary items/unusual items

 –  

 –   

 

Profit before taxation

 8,136,492

 5,185,140

56.92%

Taxation

 (3,181,613)

 (2,063,027)

54.22%

Profit after taxation – continued operations

 4,954,879

 3,122,113

58.70%

Profit after taxation – discontinued operations

 16,932

 9,730

 

Total profit after taxation

 4,971,811

 3,131,843

58.75%

Basic and diluted earnings per share

 3.94

 2.48

58.87%

 

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Posted on: 2020-08-13T12:37:00+05:00

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