February 21, 2024 (MLN): Askari Bank Limited (PSX: AKBL) has reported a profit of Rs21.54 billion [EPS: Rs14.83] in 2023, 54.2% YoY higher compared to the earning of Rs14.06bn [EPS: Rs9.7] recorded in the same period last year (SPLY).
Looking towards the growth in profitability, the directors of the bank have declared a final cash dividend of Rs2.5 per share i.e. 25%.
The sound financial results for the year 2023 were enabled by proactive actions to manage businesses, a client-focused strategy, emphasis on technology, effective cost controls, rationalization of human resource and excellent performance of Ikhlas Islamic banking, according to the bank.
Furthermore, with the brand and the breadth of its product offering, technology to talent, effective performance management, a strong balance sheet, growing capital, and high credit quality the Bank is well positioned for a journey ahead.
Most importantly with the strong governance practices and effective oversight of the Board, the Bank is moving forward with a renewed vision to improve client and employee experience and to drive profitable and sustainable growth for our shareholders.
The bank witnessed an increase of 48.77% YoY in its net interest income (NII) to stand at Rs59.45bn, compared to Rs39.96bn incurred in 2022. The surge in NII is due to a jump in interest-earning (Rs305.63bn), up by 84.34% YoY.
During the period under review, the bank’s total non-markup income also improved by 14.16% YoY to Rs13.26bn, owing to a significant jump in fee and commission income of 34.22% YoY to stand at Rs7.31bn.
Similarly, AKBL’s dividend income and gain on securities increased to Rs711.93m and Rs780.7m during the review period.
Conversely, the foreign exchange fell by 29.08% YoY to stand at Rs3.9bn respectively.
Moving forward, the profit and loss statement shows that AKBL incurred a provision reversal of Rs966.36m in 2023, compared to a reversal of Rs1.04bn reported in 2022.
On the expense side, the total non-markup expenses expanded by 28.1% YoY to Rs29.57bn in 2023 compared to Rs23.08bn in 2022.
The increase was attributed to a 27.53% YoY spike in operating expenses, rising from Rs22.57bn in 2022 to Rs28.79bn in 2023.
Additionally, the bank’s expenses related to the Workers' Welfare Fund and other charges went up during the review period.
The bank paid Rs20.64bn on the tax front, 53.2% YoY higher than the amount paid in 2022.
| Consolidated Financial Results for the year ended December 31, 2023 ('000 Rupees) | |||
|---|---|---|---|
| Dec-23 | Dec-22 | % Change | |
| Mark-up/return/interest earned | 305,634,875 | 165,795,743 | 84.34% |
| Mark-up/return/interest expensed | 246,184,226 | 125,834,190 | 95.64% |
| Net mark-up/interest income | 59,450,649 | 39,961,553 | 48.77% |
| NON MARK-UP/INTEREST INCOME | |||
| Fee and commission income | 7,310,000 | 5,446,374 | 34.22% |
| Dividend income | 711,930 | 486,424 | 46.36% |
| Foreign exchange income | 3,896,622 | 5,494,301 | -29.08% |
| Income / (loss) from derivatives | – | ||
| Gain on securities | 780,698 | (251,459) | -410.47% |
| Other income | 564,383 | 443,129 | 27.36% |
| Total non mark-up/interest income | 13,263,633 | 11,618,769 | 14.16% |
| Total Income | 72,714,282 | 51,580,322 | 40.97% |
| NON MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | 28,786,370 | 22,572,388 | 27.53% |
| Workers' Welfare Fund | 533,110 | 339,903 | 56.84% |
| Other charges | 245,543 | 167,678 | 46.44% |
| Total non mark-up/interest expenses | 29,565,023 | 23,079,969 | 28.10% |
| Profit before provisions | 43,149,259 | 28,500,353 | 51.40% |
| Provisions and write offs – net | 966,361 | 1,042,135 | -7.27% |
| Extraordinary items/unusual items | – | – | |
| Profit before taxation | 42,182,898 | 27,458,218 | 53.63% |
| Taxation | (20,642,489) | (13,397,859) | 54.07% |
| Profit after taxation | 21,540,409 | 14,060,359 | 53.20% |
| Basic and diluted earnings per share | 14.83 | 9.70 | – |
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Posted on: 2024-02-21T13:13:24+05:00
