Contents
Directors' Review | 1 |
Directors' Review (Urdu) | 6 |
Unconsolidated Condensed Interim Statement of Financial Position | 7 |
Unconsolidated Condensed Interim Profit and Loss Account | 8 |
Unconsolidated Condensed Interim Statement of Comprehensive Income | 9 |
Unconsolidated Condensed Interim Statement of Changes in Equity | 10 |
Unconsolidated Condensed Interim Cash Flow Statement | 11 |
Notes to the Unconsolidated Condensed Interim Financial Statements | 12 |
Consolidated Condensed Interim Statement of Financial Position | 40 |
Consolidated Condensed Interim Profit and Loss Account | 41 |
Consolidated Condensed Interim Statement of Comprehensive Income | 42 |
Consolidated Condensed Interim Statement of Changes in Equity | 43 |
Consolidated Condensed Interim Cash Flow Statement | 44 |
Notes to the Consolidated Condensed Interim Financial Statements | 45 |
Corporate Information
Board Of Directors | Lt. Gen Anwar Ali Hyder, HI(M) (Retd) - Chairman |
Mr. Jahangir Piracha | |
Mr. Arif Ur Rehman | |
Lt. Gen Ghayur Mahmood Awan, HI(M) T Bt (Retd) | |
Syed Bakhtiyar Kazmi | |
Mr. Manzoor Ahmed | |
Raja Muhammad Abbas | |
Ms. Zoya Mohsin Nathani | |
Mr. Kamran Yousuf Mirza | |
Ms. Samina Rizwan | |
Mr. Atif R. Bokhari - President & Chief Executive | |
Board Audit Committee | Mr. Kamran Yousuf Mirza - Chairman |
Lt. Gen Ghayur Mahmood Awan, HI(M) T Bt (Retd) | |
Syed Bakhtiyar Kazmi | |
Mr. Manzoor Ahmed | |
Raja Muhammad Abbas | |
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: (92 51) 8092624, UAN: (92 51) 111 000 787 | |
Fax: (92 51) 2857448 | |
Email: ir@askaribank.com.pk | |
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: (92 42) 36362061-66 | |
Fax: (92 42) 36300072 | |
Email: info@cdcsrsl.com | |
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 first quarter ended March 31, 2024.
At the outset, we would like to inform that 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. Waqar Ahmed Malik, Dr Nadeem Inayat and Mr. Sarfaraz Ahmed Rehman. We further extend a very warm welcome to incoming directors, Lt Gen Ghayur Mahmood Awan (Retd), Syed Bakhtiyar Kazmi and Mr. Jahangir Piracha and look forward to their wise council on the Board of Directors.
Economy:
The latest economic indicators depict a moderate pick-up in activity on the back of better prospects for agriculture, notable improvement in current account, external inflows including IMF SBA tranche and improved confidence despite tight monetary and fiscal policy and continued import management. However, macroeconomic risks remain high amid a large debt burden and limited foreign exchange reserves.
Inflation has begun to decelerated in line with expectations, though the levels remain high and the outlook is susceptible to risks contingent upon targeted fiscal consolidation, timely realization of external inflows and the trends of commodity prices in view of continued geopolitical tensions. Given the uncertainty regarding the inflation outlook, key central banks in both advanced and emerging economies have continued to maintain a cautious monetary policy stance. SBP MPC's recent announcement is also reflecting a cautious approach as the policy rate was kept unchanged at 22 percent.
On the external front, current account posted a deficit of USD 1.0 billion for the eight months of current fiscal year against USD 3.9 billion for the same period last year reflecting an improvement in trade balance. Trade deficit for the current period at USD 13.5 billion compares with USD 18.7 billion last year as both import and exports are showing positive variances. Remittances recorded a marginal decline for the current fiscal year; however, the trend is expected to improve due to eid and seasonal factor.
Looking ahead, Pakistan's GDP growth is expected to remain below potential at around 1.8 percent for the current fiscal year ending June 2024 as recent indicators remain fragile due to persistent inflation and elevated interest rates. The structural reforms needed to improve the economic outlook demand a clearly articulated implementation plan that is credible and targets quick progress as an imperative to restore confidence. Improved fiscal management remains pivotal to address inflation, narrow the current account deficit, improve financial sector
1
stability and increase credit to the private sector, all of which are critical for robust economic recovery
Financial Performance:
The financial results of the Bank for the first quarter ended March 31, 2024 are summarized as under:
(Rupees in million) | ||
Three months ended March 31, | ||
2024 | 2023 | |
Net mark-up and non fund income | 16,627 | 15,076 |
Administrative and other expenses | (8,114) | (6,783) |
Operating profit | 8,513 | 8,294 |
Credit loss allowarnce / provisions and write offs - net | (1,174) | 58 |
Profit before taxation | 7,339 | 8,352 |
Taxation | (3,624) | (3,648) |
Profit after taxation | 3,715 | 4,703 |
Basic earnings per share - Rupees | 2.56 | 3.25 |
Profit before provisions for the quarter ended March 31, 2024 at Rs.8.5 billion is showing an increase of 3 percent year-on-year. Profit before taxation is showing a decline of 12 percent mainly due to increase in credit loss allowance / provisions against non-performing assets. Profit after taxation declined by 21 due to a higher taxation rate in comparison with the corresponding period last year. The earnings per share at Rs.2.56 for the current period compares with Rs.3.25 for last year.
Net aggregate revenues increased by 10 percent over the same period last year mainly contributed by mark-up income which grew by 8 percent to Rs.12.9 billion. The increase in mark-up income was mainly driven by growth in earning assets partially offset by changes in market rates adversely impacting net spreads for the current quarter. Aggregate non-markup income increased by 20 percent year-on-year; mainly contributed by gains from investment and foreign exchange income. Operating expenses for the current quarter increased by 20 mainly due to the effect of inflation and Rupee devaluation, and also due to additional costs of 60 new branches added to the nation-wide network during the last twelve months. The Bank continues to manage costs prudently while investing in technologies and infrastructure to support revenue streams.
The Bank's deposits closed at Rs.1.3 trillion at March 31, 2024 with current and saving accounts constituting 84 percent of the total deposit at period end. Advances registered a growth of 8.6 percent during the quarter, from Rs. 633 billion at year end 2023 to Rs 687 billion. The economic stress on certain borrowers warranted additional classifications. Accordingly, a net provision of Rs.1.17 billion has been charged against the profit for the
2
quarter in review. During the quarter, the Bank has adopted IFRS9 as per regulatory guidance and requisite financial disclosures have been made in the annexed financial statements.
The Bank's entity rating was reaffirmed at 'AA+' (Double A Plus) for the long-term by Pakistan Credit Rating Agency Limited (PACRA), with outlook assigned as 'Stable'. The Bank's strong brand and affiliation with Fauji Foundation are recognized as the key rating drivers, supported by Bank's experienced management team, prudent risk management policies, and deep-rooted relationship with clients. Lately, retention of profits in the bank to bolster the capital structure is also a testimonial of support. The short-term rating was maintained at 'A1+' (A One Plus).
Askari Bank is strategically positioned for sustainable growth and remains committed towards building long-term shareholder value, despite macroeconomic challenges. Risk management will remain the key across all lines of businesses and the strategies will focus on being risk aware and not risk wary as challenges remain largely weighed to the downside. The Bank is expanding its footprint, to grow market share in retail segment, particularly low-cost and saving deposits. The Bank will continue to pursue strong governance and compliance discipline. Customer experience remains a key priority aided by continued initiatives in the areas of process improvements, digitization, automation and data analytics. To this end, the Bank will continue to invest in talent and technology enabling its teams to do more to help our customers achieve their ambitions and in-turn drive Askari Bank to grow in the future.
Acknowledgment:
On behalf of the Board, we would like to place on record our gratitude to our valued customers and shareholders for their continued patronage to the Askari brand; our profound thanks to the State Bank of Pakistan, Securities and Exchange Commission of Pakistan and other regulatory authorities for their guidance and assistance. We would also like to place on record our appreciation for the efforts of the Shariah Board for strengthening shariah compliance and governance framework for Askari Ikhlas Islamic Banking. Lastly, we express our deepest appreciation and gratitude to our staff for the hard work and dedication.
-sd- | -sd- |
President & Chief Executive | Chairman, Board of Directors |
Rawalpindi: April 30, 2024 |
3
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4
2.56
5
6
ASKARI BANK LIMITED
Unconsolidated Condensed Interim Statement of Financial Position As at March 31, 2024
Note |
ASSETS |
(Un-audited) | (Audited) | |
March 31, | December 31, | |
2024 | 2023 |
(Rupees in '000)
Cash and balances with treasury banks | 6 |
Balances with other banks | 7 |
Lendings to financial institutions | 8 |
Investments | 9 |
Advances | 10 |
Property and equipment | 11 |
Righ-of-use assets | 12 |
Intangible assets | 13 |
Assets held for sale | 14 |
Deferred tax assets | 15 |
Other assets | 16 |
LIABILITIES | |
Bills payable | 17 |
Borrowings | 18 |
Deposits and other accounts | 19 |
Lease liabilities | 20 |
Subordinated debts | 21 |
Other liabilities | 22 |
NET ASSETS | |
REPRESENTED BY | |
Share capital | |
Reserves | |
Surplus on revaluation of assets - net of tax | 23 |
Unappropriated profit | |
CONTINGENCIES AND COMMITMENTS | 24 |
132,080,116
13,088,650
1,492,003
1,321,232,200
687,413,783
19,531,380
9,078,172
1,874,859
1,750,000
13,065,501
115,480,376
2,316,087,040
10,151,165
829,829,766
1,301,360,197
10,712,667
12,000,000
59,422,138
2,223,475,933
92,611,107
14,492,992
69,665,607
5,108,956
3,343,552
92,611,107
160,087,394
13,789,031
-
1,182,537,688
633,132,827
18,698,072
8,312,812
1,855,607
1,750,000
8,072,702
95,769,826
2,124,005,959
12,394,336
643,362,665
1,293,145,575
9,699,474
12,000,000
56,281,088
2,026,883,138
97,122,821
14,492,992
57,739,655
4,458,362
20,431,812
97,122,821
The annexed notes 1 to 42 form an integral part of these unconsolidated condensed interim financial statements.
-sd- | -sd- | -sd- | -sd- | -sd- |
Chief Financial Officer | President & Chief Executive | Director | Director | Chairman |
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Askari Bank Ltd. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 10:35:03 UTC.