Askari Bank records 56pc increase in post-tax profit

Thursday, August 30, 2012 - Karachi—The profit before taxation of Askari Bank Limited has increased by 48 percent to Rs 1,576.014 million in the half year period ended June 30, 2012 as compared to Rs 1,066.317 million in the same period in 2011. The bank’s profit after taxation has registered an increase of 56 percent to Rs 1,098.765 million in the period under review against Rs 703.578 million in the same period last year.

The board of directors of the bank in its meeting on Tuesday declared that the bank’s earning per share has increased to Rs 1.35 in the half year period ended June 30, 2012 against Re 0.87 in the same period last year. The growth is mainly attributable to the decline in provision against non-performing assets by 39 percent over the same period last year.

During the period under review, net mark-up income declined by 3 percent, however, this decline was largely offset by 31 percent increase in non-markup income also reflecting change in revenue streams due to certain re-composition of our investment portfolio made during the period under review, the bank in a statement. Administrative expenses increased by 7 percent mainly due to additional expenses incurred on expansion of branch network that reached 245 at the close of the half year from 235 as on June 30, 2011, besides inflationary upsurge.

At half year end 2012, customer deposits stood at Rs 294.5 billion against Rs 291.5 billion at year end 2011. On the asset side, net advances increased by 3 percent, to Rs 155.3 billion compared with Rs 150.7 billion as at December 31, 2011 while net investments at Rs 133.7 billion remained almost unchanged from the position at the year end 2011.