Askari Bank announced its first-quarter results on Thursday as the profit after tax of the bank was up by 12.2% to Rs 1.38 billion as compared to Rs 1.23 billion in the corresponding year.
Earnings per share of the bank were increased to Rs 1.10 as compared to Rs 0.98 in the same period last year.
Growth in profitability was primarily led by the bank’s recovery pipeline and uptick in Net Interest Income (NII). The bank did not announce a dividend in this quarter.
Net Interest Income of the bank settled at Rs 4.2 billion, improving 11% YoY as 5% YoY higher interest earned fueled the topline of the bank, possibly owing to improvement in spreads on loans.
The administrative expenses saw an increase of 7.93% in the quarter whereas the other charges remained flat.
Non-Funded Income (NFI) fell 8% YoY as the bank recorded capital gains of a mere Rs 93 million (down 82% YoY) owing to a massive reduction in its surplus on AFS investments as per CY17 accounts.
However, fee income (+26% YoY) and FX income (+81% YoY) supported the NFI of the bank.
The bank booked a reversal of Rs 505 million (42% YoY increase) which provided stimulus to the earnings as the recovery pipeline continues to strengthen.
Last month Askari Bank Limited had a change of command. They had appointed Saleem Anwar as the acting President and CEO of the bank, replacing Syed. M Hussaini at the helm.
AKBL’s share at the bourse closed at Rs 23.59, up by Rs 0.40 with a turnover of 1.46 million shares.
|Unconsolidated Profit and Loss Account – For the Three Months Ended, March 31 2018|
|Key Financials||March, 2018||March, 2017||% Change|
|Amounts in PKR ‘000|
|Net mark-up/return/interest earned||4,229,100||3,769,472||12.19%|
|Net mark-up/return/interest income after provisions||4,747,364||4,125,255||15.08%|
|Fee, commission and brokerage income||692,125||551,033||25.61%|
|Income from Foreign Currencies||324,013||178,705||81.31%|
|Capital gain on sale of securities – net||92,903||517,316||-82.04%|
|Total non-mark-up/interest income||5,984,197||5,467,997||9.44%|
|Profit before Taxation||2,123,551||1,893,071||12.17%|