Askari Bank’s Profits Grew 58% in Jan-June 2020

Askari Bank Limited has recorded a staggering profit growth of 58% in the first half of 2020 compared with a similar period of last year despite the COVID-19 outbreak and a significant decline in interest rates.

According to the financial results, the bank made a profit of Rs. 4.95 billion from January to June 2020 as against Rs. 3.12 billion in the corresponding period of last year, showing an increase of Rs. 1.8 billion in profitability.

Various other banks also reported handsome growth in profitability which showed that their alternate business plans were effective.

Askari Bank made an interest income of Rs. 14.4 billion and earned a non-markup income of Rs. 4.5 billion during the period. Its overall expenses also grew to Rs. 9.9 billion from Rs. 8.8 billion whereas the earnings per share also surged to Rs. 3.93 from Rs. 2.48, which is good for shareholders. The dividend was not announced as per SBP’s policy which should be reevaluated in the future considering the healthy balance sheets of the bank.

During the period under review, the bank has actively been involved in various relief and loan schemes introduced by the central bank.

As the interest rates fall and various schemes were introduced including housing finance, it is expected that banks’ business will grow in the remaining half of 2020 and will reflect positively on the balance sheet.

  • It is heartening to know that in this time of great turmoil Askari bank has registered a steep growth in its profits. I happen to be one of the earliest shareholders with this bank. But its terribly disappointing to see that while the bank has flourished immensely, having branches in every nook and corner of every city; the shareholders share stands stagnant @ Re 1 per share. Is this how the forces bank should take account of its shareholders? I have stopped accepting the meager dividend thats directed at my address. Very, very pathetic.

  • Askari Bank undue profiteering is based on mostly on malpractices,by imposition of undue service charges against the standing policies of State Bank.Mostly uniformed serving and pensioners are their clients who can’t speak even against their highhandedness for obvious reasons…..

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