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

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 31st 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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Posted on: 2020-02-13T12:57:00+05:00

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