Askari Bank announced annual financial results for 2015 with a strong bottom line growth well above the market expectations. Profit before tax at Rs 8.43 billion is showing an impressive growth of 46 percent and profit after tax of Rs 5.04 billion is reflecting a growth of 26 percent, resulting in Earnings per share (EPS) of Rs 4.00 against Rs 3.19 for the last year.
The Bank's total asset base has reached Rs 536 billion, registering a growth of 20 percent during the year. As of December 31, 2015, net advances increased by 17 percent to Rs 200 billion, while investments grew significantly by 23 percent. Net interest income increased by an impressive 25 percent despite an environment of declining spreads in market. This appears to have been contributed by a 19 percent growth in current accounts. Total deposits grew by 12 percent to Rs 433 billion.
Non-fund income of the Bank also grew significantly by 23 percent over the same period last year mainly contributed by a 21 percent increase in fees and commission and gains from fixed income bonds. Administrative expenses are reported to have increased by only 9 percent despite aggressive expansion of branch network pursued by the Bank. The cost-to-income ratio has improved to 56 percent from 64 percent for last year. Asset quality reflected by NPLs to gross advances ratio improved to 14 percent, compared to 16 percent at the end of last year. The Bank has announced a final cash dividend of Rs 1.25 per share (12.5 percent) for the year ended December 31, 2015, thus making the total payout for the year to Rs 2.25 (22.50 percent).-PR