Karachi August 29 2024: Askari Bank Limited profit after tax for the first half 2024 is reported at PKR 8.1 billion, a decline of 9 percent year on year mainly due to reduction in markup income upon restructuring of loan to a large PSE during the current period.
Share price of the bank dropped PKR 24.6 or 5.0 percent after the announcement at Pakistan Stock Exchange.
Aggregate revenues for the half year at PKR 32.3 billion increased by 2 percent, net markup remained almost unchanged at PKR 24.8 billion as contributions by price and volume changes were largely offset by the above referred reduction in markup income. Non markup income increased by 11 percent reflecting increase in business momentum and better performance of stock market.
Operating and other expenses at PKR 16.5 billion recorded increase an 18 percent increase over corresponding period last year in line with high inflation levels and cost of additional branches added to the network.
Earnings per share at PKR 5.57 for the current period compares with PKR 6.10 for same period last year.
Customer deposits closed at PKR 1.4 trillion at June 30, 2024, a 9 percent growth during the period. Current and saving accounts constitutes 87 percent of the total deposit at the period end, an improvement from 84 percent. Advances registered a growth of 14 percent, from PKR 681 billion at year end 2023 to Rs 754 billion. The Bank recognized a net credit loss allowance (provision reversal) of PKR 454 million compared to a net provision charge of PKR 617 million for the comparable period.
During the period, IFRS-9 has been adopted as per regulatory guidance and requisite financial disclosures have been made in the annexed financial statements. The Bank is well capitalized with adequate buffers over regulatory requirements. At June 30, 2024, CAR improved to 19.33 from 18.35 percent while common equity tier-1 ratio improved to 15.50 against 15.11 percent.
