Askari Bank posts 20pc growth in profit

The Pak Banker - - FRONT PAGE -

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.

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