Higher NII and FX income provide a boost to AKBL's profits

MG News | February 13, 2020 at 12:57 PM GMT+05:00

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February 13, 2020 (MLN): Askari Bank Limited (AKBL) has announced its financial performance today, as per which AKBL’s profits after tax amounted to Rs 7 billion for the year ended on December 31^st 2019 compared to Rs 4.4 billion in 2018, depicting a YoY increase of 58.8%.

The bank’s profits before provisions and taxation increased by 33.8% to Rs 11 billion from Rs 8.3 billion last year. This translated into earnings per share which rose from Rs 3.51 per share to Rs 5.58 per share.

The increase in bank’s profitability was on the back of 18.9% YoY rise in Net Interest Income (NII) as the bank positioned itself in rising interest rate environment and strong FX income which grew by 57%YoY.

Furthermore, a higher increase in core banking revenues with relatively slower growth from the cost side provided a boost to banks profitability.

Alongside, financial results, the Board of Directors of the banks also announced a Cash Dividend of Rs 1.50 per share i.e.15% for the year mentioned above.

Financial Results for the year ended December 31, 2019 ('000 Rupees)
	Dec-19	Dec-18	% Change
Mark-up/return/interest earned	71,704,373	43,669,883	64.20%
Mark-up/return/interest expensed	49,567,851	25,059,925	97.80%
Net mark-up/interest income	22,136,522	18,609,958	18.95%
NON-MARK-UP/INTEREST INCOME
Fee, commission and brokerage income	3,616,428	3,116,070	16.06%
Dividend income	274,440	231,312	18.64%
Foreign exchange income	2,507,707	1,596,027	57.12%
Income / (loss) from derivatives	-	-	#DIV/0!
Gain on securities	739,351	260,103	184.25%
Other income	266,102	418,081	-36.35%
Total non-mark-up/interest income	7,404,028	5,621,593	31.71%
Total Income	29,540,550	24,231,551	21.91%
NON-MARK-UP/INTEREST EXPENSES
Operating expenses	18,235,061	16,430,676	10.98%
Workers' Welfare Fund	42,117	(540,060)	-107.80%
Other charges	99,947	905
Total non-mark-up/interest expenses	18,377,125	15,891,521	15.64%
Profit before provisions	11,163,425	8,340,030	33.85%
Provisions and write offs - net	773,275	1,460,575	-47.06%
Extraordinary items/unusual items	-	-
Profit before taxation	10,390,150	6,879,455	51.03%
Taxation	(3,372,249)	(2,448,177)	37.75%
Profit after taxation - continued operations	7,017,901	4,431,278	58.37%
Profit after taxation - discontinued operations	14,669	(2,659)
Total profit after taxation	7,032,570	4,428,619	58.80%
Basic earnings per share	5.58	3.51	58.97%

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