Askari Bank (AKBL) declared half year results (profit before tax) at Rs.12.157 billion indicating a YoY growth of 80% on the strength of solid execution by all business areas. Profit after tax at Rs.6.313b (EPS: Rs.5.01) indicates a rise of 53% YoY, less than PBT growth largely owing to an unprecedented surge in income tax charge on banking firms declared by the federal government in previous budget.
Total sales grew by 11% YoY to Rs.23 billion generated by significant growth across major income sources. Operating expenditures were properly handled and successfully dropped by 3% YoY despite the establishment of 23 new branches and significant inflation. AKBL’s cost to income ratio is now among the best in the sector, a trend that reflects the successful execution of several cost optimization programmes.
The entire asset base expanded by 23% during the six months to Rs.1.54 trillion (38% YoY). Askari Bank has been working on expanding its retail deposit and current account market share in the commercial centres of the country’s central and southern regions. The outcomes of the plan are showing in the current financial results; current accounts climbed to Rs 355 billion, with total deposits at Rs.1.085 trillion.
The CASA (current and saving accounts) ratio went raised from 80% in December ’21 to 82% in June ’22, resulting in a better current account mix of 32.7%. The bank’s loan portfolio grew by 14% from December ’21 to Rs.578 billion (26% YoY), mostly due to the bank’s support of the private sector and the commercial enterprise sector.
The Bank has been awarded entity rating of ‘AA+’ (Double A Plus) with stable outlook.
