Askari Bank Posts 24% Growth in Profits in H1 2019

Askari Bank recorded a profitable half-year that ended on June 30 2019. It showed a growth of 24 percent year-on-year.

According to the financial results, the bank’s profit surged to Rs. 3.12 billion during the 1HY  2019 as compared to the profit in the corresponding period of last year, which stood at Rs. 2.52 billion.

The growth in profits was due to an increase in net interest income, which was up by 21.55%. The bank’s interest income surged to Rs. 10.85 billion as compared with Rs. 8.93 billion in the same period last year.

The fee income of the bank was up by 23%, while foreign exchange income increased by 32% as a result of better leveraging of market opportunities. The total expenses increased by 13.2%, owing to higher operating and non-core expenses.

Earnings per share of the bank were stated at Rs. 2.48 as compared with Rs. 2.00 in the previous year

During the quarter under view, it reported a profit of Rs. 1.29 billion, up 13% YoY from Rs. 1.14 billion. The bank reported a limited growth of 9% YoY growth in Net Interest Income (NII) during 2QCY19, which was lower than the market expectations.

It is pertinent to note that profit before tax in the quarter has declined by 10% primarily due to higher provisions and operating costs.

Looking forward, the bank is likely to maintain its profitability on the basis of earning from the interest income.

AKBL’s share at the bourse closed at Rs. 17.11, up by Rs. 0.44 with a turnover of 1,231,000 shares on Thursday.

Askari Bank is being operated with a network comprising of 515 branches across the country. It has 421 conventional branches (including 40 sub-branches), 94 Islamic branches (including 3 sub-branches) and a wholesale bank branch in Bahrain.

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