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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