Breaking News: Askari Bank Limited (PSX: AKBL) Reports Decline in 1QCY24 Earnings
Askari Bank Limited (PSX: AKBL) has announced its financial results for the first quarter of 2024 (1QCY24) today, revealing a notable decrease in profitability compared to the same period last year.
The bank’s Profit After Tax (PAT) for 1QCY24 stands at Rs. 3.7 billion, reflecting a significant decline of 21 percent Year-on-Year (YoY) and 46 percent Quarter-on-Quarter (QoQ).
According to analysis by Arif Habib Limited (AHL), the decline in profitability can be attributed to increased provisioning compared to the reversals recorded in the corresponding period of the previous year. This, coupled with a decrease in markup income, has led to the overall decline in earnings.
In terms of financial performance, the bank recorded a Net Interest Income of Rs. 12.9 billion for 1QCY24, marking an 8 percent increase compared to the same period last year, but experiencing a notable 32 percent decrease QoQ.
While interest earned saw a significant surge of 76 percent compared to the previous year, interest expenses witnessed a substantial 94 percent increase YoY and a 25 percent increase QoQ.
Non-Markup income experienced a 23 percent YoY growth, driven by increases in Fee Income, FX income, and gains on the sale of securities. However, on a QoQ basis, Fee income decreased by 10 percent, and gains on the sale of securities decreased by 51 percent.
The bank reported a total provisioning of Rs. 1.17 billion for 1QCY24, compared to a provisioning reversal of Rs. 58 million in the same period last year, marking a significant increase of 325 percent QoQ.
Operating expenses during 1QCY24 totaled Rs. 8.2 billion, reflecting a 21 percent increase YoY, with a Cost/Income ratio of 49 percent for 1QCY24, up from 45 percent in the same period last year.
The effective tax rate for the bank stood at 49 percent during 1QCY24, showing an increase from 44 percent in the same period last year.
Askari Bank Limited reported earnings per share (EPS) of Rs. 2.6 for 1QCY24 compared to an EPS of Rs. 3.2 in 1QCY23, indicating a decline in earnings per share.
These results indicate a challenging start to the year for Askari Bank Limited, as it navigates through a dynamic and evolving financial landscape.
