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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