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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