Askari Bank posts 20pc growth in profit
KARACHI: Askari Bank Limited (AKBL) managed to register a handsome growth of 20 percent in 2015 from the previous year with a bottom line touch Rs 5 billion. According to financial results disclosed to its stakeholder at Pakistan Stock Exchange, the bank recorded a profit of Rs4.94 billion in 2015 as compared with Rs 4.09 billion registered in 2014. The bank despite being high expenses and taxation remained its profitability with marked growth even big banks showed paltry growth in their profits.
The profit before tax stood at Rs8.33 billion by end of 2015 as against of Rs 5.82 billion of 2014's profit before tax showing a growth of 43 percent.
The revenue earning of the bank increased to Rs20.8 billion in 2015 from Rs17.2 billion of 2014 including an interest income of Rs14 billion and Rs6.7 billion from different non-interest sources such as commission and brokerage houses fee.
According to bank's report, the bank's total assets rose to Rs516 billion as of September 30, 2015 compared to Rs447 billion as at December 31, 2014. Customer deposits registered a growth of 10 percent to reach Rs427 billion with a healthy improvement in overall deposits mix as current accounts registered a growth of 9 percent during the nine months ended September 30, 2015. Net advances increased by 12 percent, to Rs190 billion as of September 30, 2015; while aggregate investment grew by 25 percent.
At present, the bank is expanding its branches network aggressively which increased to 400 throughout the country including including 74 Islamic Banking branches, and a Wholesale Bank Branch in Bahrain. The expanding branch network aims to build on the existing momentum with the deposit growth targeted above the mark.
Askari Bank leadership believes that the changes in the interest rate environment have further compressed banking spreads, but Askari Bank remains optimistic and is strongly positioned to leverage on the improving economy, expanding branch network, wide range of products and service offerings and strong balance sheet.
It foresaw the economic outlook of the country seems promising on the back of higher industrial growth target, increased budgeted spending on energy, infrastructure and relief projects, will lead to strong GDP growth.