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

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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Posted on: 2020-10-22T13:41:00+05:00

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