April 30, 2024 (MLN): Askari Bank Limited (PSX: AKBL) has reported a profit of Rs3.74 billion [EPS: Rs2.58] in Q12024, 20.49% YoY lower compared to the earning of Rs4.7bn [EPS: Rs3.25] recorded in the same period last year (SPLY).
The bank witnessed an increase of 8.22% YoY in its net interest income (NII) to stand at Rs12.92bn, compared to Rs11.94bn incurred in Q12023.
Likewise, the bank’s total non-markup income also improved by 22.57% YoY to Rs3.85bn, owing to a significant jump in both fee and commission income and foreign exchange income.
The bank witnessed a remarkable turnaround in its securities trading, posting a profit of Rs273.55m compared to a loss of Rs91.32m in Q12023.
However, the rise in the bank’s operating expenses outweighed the increase in both interest and non-interest income, resulting in AKBL recording a substantial drop in profitability.
On the expense side, the total non-markup expenses expanded by 21.05% YoY to Rs8.21bn in Q12024 compared to Rs6.78bn in Q12023.
Additionally, the bank’s expenses related to the Workers' Welfare Fund also went up during the review period.
The profit and loss statement further shows that the bank incurred a provision expense of Rs1.17bn compared to a reversal of Rs57.81m in Q12023, another contributing factor to the drop in profits.
The bank paid Rs3.64bn on the tax front, 0.14% YoY lower than the amount paid in Q12023.
| Consolidated Financial Results for the quarter ended March 31, 2024 ('000 Rupees) | |||
|---|---|---|---|
| Mar-24 | Mar-23 | % Change | |
| Mark-up/return/interest earned | 100,494,678 | 57,147,484 | 75.85% |
| Mark-up/return/interest expensed | 87,577,415 | 45,211,607 | 93.71% |
| Net mark-up/interest income | 12,917,263 | 11,935,877 | 8.22% |
| NON MARK-UP/INTEREST INCOME | |||
| Fee and commission income | 1,832,084 | 1,675,012 | 9.38% |
| Dividend income | 178,230 | 185,522 | -3.93% |
| Foreign exchange income | 1,451,648 | 1,280,005 | 13.41% |
| Income / (loss) from derivatives | – | – | |
| Gain on securities | 273,546 | (91,321) | -399.54% |
| Other income | 113,929 | 91,352 | 24.71% |
| Total non mark-up/interest income | 3,849,437 | 3,140,570 | 22.57% |
| Total Income | 16,766,700 | 15,076,447 | 11.21% |
| NON MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | 8,074,944 | 6,556,982 | 23.15% |
| Workers' Welfare Fund | 135,000 | 118,220 | 14.19% |
| Other charges | 378 | 107,352 | -99.65% |
| Total non mark-up/interest expenses | 8,210,322 | 6,782,554 | 21.05% |
| Profit before provisions | 8,556,378 | 8,293,893 | 3.16% |
| Credit loss allowance / provision and write offs – net | 1,173,673 | (57,809) | -2130.26% |
| Extraordinary items/unusual items | – | – | |
| Profit before taxation | 7,382,705 | 8,351,702 | -11.60% |
| Taxation | 3,643,172 | 3,648,281 | -0.14% |
| Profit after taxation | 3,739,533 | 4,703,421 | -20.49% |
| Basic and diluted earnings per share | 2.58 | 3.25 | – |
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Posted on: 2024-04-30T15:38:36+05:00
