Corporate results: Askari Bank’s profit up 25.6% at Rs5b for 2015

Earnings per share rise to Rs4 as opposed to Rs3.19 last year

KARACHI: Askari Bank posted a net profit of Rs5 billion for 2015, up 25.6% than the earnings recorded in the preceding year, according to a stock notice on Monday.

Earnings per share of Askari Bank stood at Rs4 as opposed to Rs3.19 last year. The board of directors also announced a final cash dividend of Rs1.25 per share, which is in addition to an interim cash dividend of Rs1 per share.

Net interest income of the bank amounted to Rs14 billion in 2015, up 21.2% from a year ago. According to BMA Capital, the increase was partly led by a lower cost of funding, as interest expense declined by approximately 4% annually on the back of lower average discount rate of roughly 7.5% in 2015.

In addition, 6% year-on-year (YoY) growth in interest earned on account of higher-yielding Pakistan Investment Bonds (PIBs) also played a key role in increasing the bank’s net interest income.

The YoY increase in non-interest income of the bank clocked up at 23%. Non-interest income equalled Rs6.7 billion mainly on account of higher gains on sales of securities, which increased by about 80% YoY to Rs3.2 billion.

Operating costs increased 9% on an annual basis in 2015 to Rs12.3 billion. The tax expense went up 92% to Rs3.4 billion, as the effective tax rate jumped to 40% on the back of a one-time super tax imposed and changes in the tax structure of banks, BMA Capital said.

Published in The Express Tribune, February 16^th, 2016.

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