Askari Bank Limited has made an all-time high profit of Rs. 7 billion in 2019.
The bank’s previous highest profit was in 2017 and stood at Rs. 5.26 billion.
According to the financial results, the bank recorded profit growth of 58% from the previous year in which it made a profit of Rs. 4.431 billion, showing an increase of Rs. 2.58 billion profit in one year.
High-interest rates and profit margins on non-markup avenues increased the profitability of the bank, similar to many banks in the banking industry. The bank made revenues of Rs. 22 billion from interest income and Rs. 29.5 billion from non-markup avenues.
Among the competing bank, Askari Bank has left behind Faysal Bank which recorded a profit of Rs. 6 billion in 2019. The bank is likely to take edge over Habib Metro Bank over profitability to be the 11th most profitable bank in the country.
The bank earnings per share surged to 5.57 from 3.52. The board of directors announced a final cash dividend of Rs. 1.5 per share for its shareholders.
Askari Bank To Acquire 100% Stakes in Askari Securities Ltd
Askari Bank is set to enhance its assets in the financial sector as it has planned to acquire 100 percent stakes in its subsidiary Askari Securities Limited.
According to the stock filing, the board of directors of Askari Bank Limited has given a green signal to the management to get the regulatory approvals from authorities and shareholders to acquire remaining 26 percent shares in its subsidiaries.
The bank, having 74% stakes in Askari Securities Limited, will acquire 5.98 million of its shares at the price of 8.50 per share from Army Welfare Trust, which owns 26 percent shareholding.
Accordingly, the bank will invest an amount of Rs. 50.8 million in its subsidiary.
The acquisition deal is sealed once the approval is received from regularity bodies mainly State Bank of Pakistan and Security and Exchange Commission of Pakistan (SECP), and the shareholders in the annual general meeting.
Askari Securities Ltd. is one of the fastest developing investment houses in Pakistan’s Capital market, offering a wide range of investment services for institutions and retail clients. ASL is a TRE Certificate Holder of the Pakistan Stock Exchange Limited and Corporate Member of the Pakistan Mercantile Exchange Limited.