Askari Bank's profits rise by 87% in 9MCY20 despite higher taxes and provisions

MG News | October 22, 2020 at 01:41 PM GMT+05:00

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October 22, 2020 (MLN): Askari Bank Limited has earned profits of Rs. 8.2 billion (EPS: 6.5) for the nine months ended September 30, 2020, which is nearly 87% higher than the figures recorded in the same period of last year.

The growth in earnings was led by a 39% increase in net interest income, coupled with a 44% rise in the non-interest income. The latter mainly saw contribution from gains on securities, whilst other components reported meagre declines.

The Bank incurred operating expenses of Rs. 14.9 billion, i.e. 13% higher than the same period of last year. Other expenses such as Workers’ Welfare Fund and Non-core charges showed a decline of 51% and 57%, respectively.

However, there were some setbacks faced in the form of provisioning cost and income tax expense, which rose by 81% and 86% respectively.

Consolidated Financial Results for nine months ended September 30, 2020 (Rupees'000)
	Sep-20	Sep-19	% Change
Mark-up / return / interest earned	60,036,205	50,742,385	18%
Mark-up / return / interest expensed	(37,540,633)	(34,509,976)	9%
Net mark-up / interest income	22,495,572	16,232,409	39%
NON MARK-UP / INTEREST INCOME
Fee and commission income	2,602,860	2,645,654	-2%
Dividend income	202,950	206,815	-2%
Foreign exchange income	1,850,817	1,865,711	-1%
Income / (loss) from derivatives
Gain / (loss) on securities - net	2,388,880	98,709	2320%
Share of profit from associates		#DIV/0!
Other income	230,012	232,252	-1%
Total non-markup / interest income	7,275,519	5,049,141	44%
Total income	29,771,091	21,281,550	40%
NON MARK-UP / INTEREST EXPENSES
Operating expenses	(14,903,577)	(13,169,818)	13%
Workers welfare fund	(33,442)	(68,239)	-51%
Other charges	(42,904)	(99,766)	-57%
Total non-markup / interest expenses	(14,979,923)	(13,337,823)	12%
Profit before provisions	14,791,168	7,943,727	86%
Provisions and write offs - net	(1,320,797)	(731,119)	81%
Extraordinary / unusual items
PROFIT BEFORE TAXATION	13,470,371	7,212,608	87%
Taxation	(5,264,202)	(2,830,064)	86%
PROFIT AFTER TAXATION	8,206,169	4,382,544	87%
Earnings per share	6.5	3.48	87%

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