AKBL HY-2022 Results
AKBL announced half year earnings (profit before tax) at Rs.12.157 bn depicting a YoY
increase of 80% on the back of strong delivery by all business segments. Profit after tax at
Rs.6.313 bn (EPS: Rs.5.01) shows an increase of 53% YoY, less than PBT growth primarily
due to an extraordinary jump in income tax levy on banking companies announced by the
federal government in recent budget.
Total revenues increased by 11% YoY to Rs.23 billion contributed by robust growth across
key income streams. Operating expenses were well contained and effectively declined by 3%
YoY despite the addition of 23 new branches and high inflation. This trend reflects the effective
implementation of various cost rationalization initiatives and has also placed AKBL’s cost to
income ratio amongst the best in industry for the current period.
The total asset base grew by 23% during the six months to Rs.1.54 trillion (38% YoY). Askari
Bank has been pursuing a strategy to grow market share of retail business, particularly retail
deposit and current accounts in the business hubs of central and south regions. The results of
the strategy are reflecting in the current financial results; current accounts grew to Rs 355
billion, with total deposits at Rs.1.085 trillion. Current account mix improved to 32.7% with
the CASA (current and saving accounts) ratio increasing from 80% in December’21 to 82% in
June ’22. The Bank continued to facilitate all sectors of the economy particularly lending to
private sector and trade business; the loan portfolio increased by 14% over December ‘21 to
Rs.578 billion (26% YoY).
The Bank has been assigned entity rating of ‘AA+’ (Double A Plus) with stable outlook. The
Bank’s strong brand and affiliation with Fauji Foundation are recognized as the key rating
drivers, supported by strengths in terms of market penetration, customer confidence,
sustainable funding sources and income generating avenues.
Going forward, AKBL will continue to drive business growth supported by enhanced
governance, compliance, credit and effective risk management. the Bank plans to grow market
share in retail segment, particularly low-cost and saving deposits which aligns well with the
branch network expansion. Emphasis will remain on boosting trade volumes with primary
focus on middle market segment while pursuing digital transformation and process
improvements. The Bank is creating a caring culture and as a socially conscious organization
taking steps to support the needs for persons with disabilities. The Bank will continue to invest
in human capital fostering a service culture that encourages collaboration and innovation.
