Askari Bank : Transmission of Quarterly Report for the Period Ended

Contents

Corporate Information
Directors' Review	1
Directors' Review (Urdu)	7
Independent Auditor's Review Report	8
Unconsolidated Condensed Interim Statement of Financial Position	9
Unconsolidated Condensed Interim Profit and Loss Account	10
Unconsolidated Condensed Interim Statement of Comprehensive Income	11
Unconsolidated Condensed Interim Statement of Changes in Equity	12
Unconsolidated Condensed Interim Cash Flow Statement	13
Notes to the Unconsolidated Condensed Interim Financial Statements	14
Consolidated Condensed Interim Statement of Financial Position	41
Consolidated Condensed Interim Profit and Loss Account	42
Consolidated Condensed Interim Statement of Comprehensive Income	43
Consolidated Condensed Interim Statement of Changes in Equity	44
Consolidated Condensed Interim Cash Flow Statement	45
Notes to the Consolidated Condensed Interim Financial Statements	46

Corporate Information

Board Of Directors	Mr. Waqar Ahmed Malik - Chairman
	Mr. Sarfaraz Ahmed Rehman
	Mr. Arif Ur Rehman
	Dr. Nadeem Inayat
	Syed Bakhtiyar Kazmi
	Mr. Manzoor Ahmed
	Mr. Kamran Yousuf Mirza
	Ms. Zoya Mohsin Nathani
	Ms. Samina Rizwan
	Raja Muhammad Abbas
	Mr. Atif R. Bokhari - President & Chief Executive
Board Audit Committee	Mr. Kamran Yousuf Mirza - Chairman
	Dr. Nadeem Inayat
	Syed Bakhtiyar Kazmi
	Mr. Manzoor Ahmed
	Raja Muhammad Abbas
Shariah Board	Mufti Muhammad Zahid - Chairman
	Mufti Zakir Hassan Naumani - Member
	Dr. Lutfullah Saqib - Member
	Dr. Muhammad Tahir Mansoori - Resident Shariah Board Member
Auditors	KPMG Taseer Hadi & Co.
	Chartered Accountants
Legal Advisors	M/s RIAA, Barker Gillette Advocates & Corporate Counselors
Company Secretary	Syed Ali Safdar Naqvi
Registered Office	AWT Plaza, The Mall, P. O. Box No. 1084
	Rawalpindi - 46000, Pakistan
	Tel: [phone], UAN: (92 51) 111 000 787
	Fax: [phone]
	Email: [e-mail]
Registrar & Share Transfer Office	CDC Share Registrar Services Limited (CDCSRSL)
	Mezzanine Floor, South Tower, LSE Plaza
	19-Khayaban-e-Aiwan-e-Iqbal, Lahore
	Tel: Customer Support Services (Toll Free)
	0800-CDCPL (23275)
	Tel: [phone]
	Fax: [phone]
	Email: [e-mail]
	Website: www.cdcsrsl.com
Entity Ratings	Long Term: AA+
	Short Term: A1+
	By PACRA
Website	www.askaribank.com
Social Media	askaribankpakistan
	Askari_Bank
	askaribankpk
	askaribanklimited
	AskariBankOfficial

DIRECTORS' REVIEW

Dear Shareholders

The Directors present the unaudited condensed interim unconsolidated financial statements for the quarter and half year ended June 30, 2023.

At the outset, we would like to inform that consequent upon election of directors held in March 2023, the composition of the Board of Directors has changed. We take this opportunity to place on record our profound appreciation for the valuable services of outgoing directors, Mr. Aftab Mansoor and Mr. Mushtaq Malik. We further extend a warm welcome to incoming directors, Mr. Kamran Yousuf Mirza and Ms. Samina Rizwan and look forward to their wise council on the Board of Directors.

Economy:

Pakistan's economy continued to face strong headwinds amidst soaring inflation, supply chain imbalances, reserve position and political uncertainty. The severe impacts of last year's floods, commodity price shock from Ukraine-Russia tensions and tough management of financing requirements; both external and domestic, exacerbated economic challenges and impeded recovery.

CPI inflation was recorded at 29.2 percent for the fiscal year 2023 compared to 12.2 percent for the last fiscal, though recent data reflects moderate trend as month-on-month CPI showed a decline of 0.3 percent for June 2023. Current account deficit narrowed to USD 2.6 billion for fiscal 2023 from USD 17.5 billion last year mainly due to contraction in imports and was sufficient to offset the decline in exports and remittances. For the month of June 2023, current account is showing a surplus of USD 334 million. The nine-monthStand-By Arrangement (SBA) with the IMF has been the key stabilization measure for the current period as it largely addressed the near-term external sector's stability concerns. The receipt of first tranche under the SBA and additional funds in bilateral support have increased SBP's foreign exchange reserves to USD 8.2 billion in July 2023 thus reducing economic uncertainty. On the domestic front, growth in private sector credit declined substantially due to cumulative impact of monetary tightening and slowdown in economic activity across major sectors as growth in money supply was driven by increased public sector borrowing.

Looking ahead, inflation is estimated to generally maintain a downward trajectory due to favorable outlook for commodity prices and positive base effect, despite the rise in electricity tariffs, fuel price and changes in duties on consumer items and raw materials. The economic growth is projected in the range of 2.0 to 3.0 percent for fiscal 2024. A higher and sustainable economic

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growth will require prudent and effective economic decisions and policies, political and economic certainty along with sufficient foreign exchange financing. The recent IMF SBA coupled with bilateral and multilateral inflows are expected to pave the way to further improve the macroeconomic environment and investor confidence.

Financial Performance:

The financial results of Askari Bank for the for the half year ended June 30, 2023. are summarized as under:

		(Rupees in million)
		Six months Ended
	June 30,	June 30,
	2023	2022
Net mark-up and non fund income	31,584	22,827
Administrative and other expenses	(13,961)	(10,566)
Operating profit	17,623	12,261
Provisions reversals - net	(617)	(110)
Profit before taxation	17,006	12,151
Taxation	(8,168)	(5,841)
Profit after taxation	8,838	6,310
		Re-stated
Basic earning per share - Rupees	6.10	4.35

The Bank's profit before tax for the six months increased by 40 percent year on year (yoy) and is reported at Rs 17.0 billion compared to Rs. 12.2 billion last year. Profit after taxation increased to Rs.8.84 billion, also showing an increase of 40 percent yoy after incorporating the impact of additional super tax as announced in the federal budget 2023-24. The earnings per share at Rs 5.94 for the current period compares with restated EPS of Rs 4.35 last year.

Net aggregate revenues increased by 38 percent to Rs 31.6 billion as net mark-up income increased to Rs.24.8 billion, a 44 percent yoy growth enabled by volumetric increase in earning assets, effective duration management and improving spreads. Non-markup income increased by 21 percent mainly driven by fee and commission incomes that posted a growth of 33 percent yoy. Major contributions were recorded in card income (debit and credit card combined) on account of higher spend on e-commerce and point-of-sale transaction. Income on trade, guarantees and credit also increased by 42 percent yoy. Non-mark-up expenses increased by 33 percent reflecting the effects of inflation, Rupee devaluation and additional cost of 42 new branches added to the nationwide network. The Bank continues to maintain a check on growth of administrative expenses and managing costs prudently while investing in technologies and infrastructure to support revenue streams. The Bank's cost to income ratio improved to 44 percent for the current six months compared to 46 percent for the same period last year.

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