Askari Bank Limited recorded a dip of 17 percent in profitability during the first half of 2021 (January-June) compared to the profits recorded in the same period last year.
According to the financial results released by the bank, it made a profit of Rs. 4.11 billion in the first half of 2021 against Rs. 4.95 billion registered in the first half of 2020.
The decline in profitability was registered in the second quarter of 2021, in which the bank generated a profit of Rs. 1.3 billion, much lower the profit it made in the same period last year which stood at over Rs. 3 billion.
The dip in the profit was recorded as the revenue streams of the bank from major avenues of interest and non-markup squeezed in the second quarter of 2021, which negatively impacted the overall profitability of the bank as a result.
Earnings per share of the bank were declined to Rs. 3.26 from Rs. 3.93. The board did not announce dividends for the shareholders.
The decrease in profitability of the bank is surprising as major banks, which announced their financial results recently, have maintained their profit growth.
Askari Bank is one of the leading banks in Pakistan, and it recorded over Rs. 10 billion profit in 2020, ranking in the top ten profitable banks of the country in the same year.
However, the financial performance of the outgoing quarter did not maintain sustainability in the profit growth, which could affect its standing among the competing banks this year.
The bank is witnessing a transition in leadership as its President and CEO, Abid Sattar, will be replaced by the renowned banker, Atif Bokhari, in the next couple of months as per the decision of the board of directors.
The banking industry termed the return of Atif Bokhari in the banking sector as a good career move that will bode well for the bank in the near future.