Askari Bank Posts a 13.6% Decline in Profits in 2018

Askari Bank posted a profit after tax of Rs 4.4 billion for 2018. The bank apparently witnessed a drop in profitability by 13.67% against a profit of Rs. 5.1 billion in 2017.

The net interest income of the bank stood at Rs 18.60 billion, up 14.90% from Rs 16.19 billion a year ago.

The YoY increase in non-interest income of the bank saw a decline of 8.09%. Non-interest income was stated at Rs 5.6 billion down from Rs 6.11 billion. The decline was mainly on account of lower gain on securities as it was down to Rs 260 million (down 87.39%) from Rs 2.06billion in the same period last year.

However, fee and commission income increased to Rs 3.11 billion against Rs 2.70 billion during the year. Other income of the bank came in at Rs 418 million, which was up by 108% as compared with Rs 200 million in the corresponding period in the previous year.

The bank faced a decline in profitability on account of a meager increase in total income, which wasn’t large enough to cover the direct and indirect expenses of the bank.

Operating expenses of the bank increased from Rs 14.94 billion to Rs 16.24billion. Moreover, workers welfare fund also went down.

Earnings per share of Askari Bank decreased to Rs 3.51 from Rs 4.06 last year. The board of directors also announced a final cash dividend of Rs 1.00 per share.

AKBL’s script at the bourse closed at Rs 22.96, up by Rs 0.18 or +0.79%, with a turnover of Rs0.71 million shares on Thursday.

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