Askari Bank Limited (AKBL) announced earnings on Thursday for CY18 at PKR 4.4bn (EPS: PKR 3.51/share) depicting a YoY decline of 14% and QoQ decline of 26%. NII witnessed strong growth during the year but net provisioning expenses and lackluster capital gains depressed earnings. Higher OPEX was the primary contributor to the bank’s QoQ downturn in earnings. The bank announced a dividend of PKR 1.00/share for the year.
Net Interest Income of the bank settled at PKR 18.6bn, improving 15% YoY during CY18 as the bank benefited from the rate hikes by SBP.
Non-Funded Income (NFI) fell 15% YoY during CY18 as the bank recorded 87% lower capital gains during the said period. However the bank booked healthy uptick in fee income at 15% YoY and 89% YoY higher FX income.
The bank booked net provisioning expense of PKR 1.5bn during CY18 compared to net reversals of PKR 1.2bn SPLY.
OPEX increased 5% YoY while increasing by a drastic 27% QoQ.
Effective tax rate settled at 36% for CY18 compared to 39% SPLY. The bank booked a tax credit of PKR 130mn during 4Q.