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 | 39 |
Consolidated Condensed Interim Profit and Loss Account | 40 |
Consolidated Condensed Interim Statement of Comprehensive Income | 41 |
Consolidated Condensed Interim Statement of Changes in Equity | 42 |
Consolidated Condensed Interim Cash Flow Statement | 43 |
Notes to the Consolidated Condensed Interim Financial Statements | 44 |
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 | |
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 third quarter and nine months ended September 30, 2023.
Economy:
Pakistan's economy weathered a very difficult fiscal year in recent times and a series of economic shocks; historic high inflation, a highly contractionary monetary policy, depleting reserves, surging commodity prices and import rationing. Turning to current fiscal year, the economy has started showing signs of recovery post approval of 'Stand-By Arrangement' with the IMF in July 2023 that helped avert a balance of payments crisis and unlock external funding prospects. The upturn in global economy coupled with marginal easing of import restrictions is mitigating supply side disruptions and supporting export-oriented industries. The better input situation is also paving the way for LSM growth prospects. The major recovery in cotton crop is encouraging for the agriculture sector and for the export outlook.
CPI inflation recorded at 31.4 percent year-on-year in September is showing a 2.0 percent increase over the previous month. Major drivers contributing to this rise are food and energy prices. Overall, the average CPI inflation for the current nine months at 31.7 percent compares with 18.0 percent for the corresponding period last year. The inflation will likely maintain a downward trajectory owing to easing of supply constraints from better agriculture output, rupee appreciation and commodity prices, amid high base effect. The Monetary Policy Committee of the SBP maintained Policy Rate at 22 percent during the meeting held in September.
On the external front, recent data reflects improvement in trade deficit that declined by 12.6 percent in the month of August 2023. Remittances also recorded an increase of 3.2 percent in August. The administrative measures to discipline foreign exchange market have yielded results and will further support remittances, trade and the current account balance. SBP has also implemented measures to stabilize PKR including structural reforms aimed at regulating exchange companies and curbing the dollar's ascent. Pakistan's main export markets are showing rising trends that improves export growth prospects. However, as imports increase gradually to stimulate economic activity, it is expected that the current account will remain within a sustainable limit.
Looking ahead, Pakistan's GDP growth is expected to remain below potential in short to medium term as recent indicators remain fragile due to persistent core inflation, elevated interest rates and lingering geopolitical uncertainties. The economic managers have implemented certain prior actions in pursuit of the IMF-SBA and have a tough agenda on hand to comply with program conditionalities including much needed energy reforms, improved governance in SOEs and widening of tax base. Improvement in investments and exports, careful economic management - including exchange rate flexibility, fiscal restraint remains key
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imperatives for macroeconomic stability, it is expected that the economic revival plans and prudent actions - policies including Special Investment Facilitation Council (SIFC) and Information Technology policy, will attract new investments to create a multiplier effect for a higher and inclusive economic growth in coming periods.
Financial Performance:
The financial results of the Bank for the quarter and nine months ended September 30, 2023 reflect continued growth momentum in line with the Bank's strategy, summarized as under:
(Rupees in million) | ||
Nine months ended September 30, | ||
2023 | 2022 | |
Net mark-up and non fund income | 50,418 | 38,128 |
Administrative and other expenses | (21,355) | (16,896) |
Operating profit | 29,063 | 21,232 |
Provisions and write offs - net | (690) | (181) |
Profit before taxation | 28,373 | 21,051 |
Taxation | (13,809) | (10,302) |
Profit after taxation | 14,564 | 10,749 |
Restated | ||
Basic earning per share - Rupees | 10.05 | 7.42 |
Profit before taxation for the current nine months at Rs.28.4 billion is showing a growth of 35 percent year-on-year while profit after taxation grew by 35 percent. The earnings per share at Rs.10.05 for the current period compares with Rs.7.42 (restated) for last year.
Askari Bank's revenues increased by 32 percent over the same period last year. Key contribution was from mark-up income which grew by 39 percent and stood at Rs.40.5 billion. The increase in mark-up income was mainly driven by a combination of earning assets growth and favourable repricing of asset book. Aggregate non-markup income increased by 10 percent year-on-year; fee and commission income increased by 37 percent contributed by increase in trade, guarantee and credit related fees while foreign exchange income declined by 18 percent due to lesser market volatility. Operating expenses for the current nine months increased by 27 percent over the corresponding period mainly due to the effect of inflation and Rupee devaluation, and also due to additional costs of 37 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 operating expense to income ratio improved to 41 percent for the current nine months from 43 percent for the same period last year.
The Bank's deposits closed at Rs.1.28 trillion at September 30, 2023, with a year-on-year growth of 12 percent. Current and saving accounts recorded a growth of 14 percent, contributing 82 percent of the total deposit at period end. Gross advances registered a decline
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of 10 percent from Rs. 615 billion at year end 2022 to Rs 556 billion at September 30, 2023 as the Bank strategized its sectoral exposures in view of rising borrowing costs to unprecedented levels. The economic stress on certain borrowers warranted classifications that resulted in a 5 percent increase in non-performing advances during the period in review. The increase in NPLs also caused slight erosion of coverage ratio from 99.9 to 96.6 percent at September 30, 2023.
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. 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. The Bank is focused on expanding its footprint, providing unparallel services to the customers and to grow market share in retail segment, particularly low-cost and saving deposits. Emphasis will remain on supporting trade volumes with primary focus on middle market segment while pursuing digital transformation and process improvements. 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 Sharia Board for strengthening sharia 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.
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Atif R. Bokhari | Waqar Ahmed Malik |
President & Chief Executive | Chairman, Board of Directors |
Karachi: | |
October 27, 2023 |
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ASKARI BANK LIMITED
Unconsolidated Condensed Interim Statement of Financial Position As at September 30, 2023
Note |
ASSETS |
(Un-audited)(Audited)
September 30, December 31,
20232022 (Rupees in '000)
Cash and balances with treasury banks | 6 |
Balances with other banks | 7 |
Lendings to financial institutions | 8 |
Investments | 9 |
Advances | 10 |
Fixed assets | 11 |
Intangible assets | 12 |
Deferred tax assets | 13 |
Other assets | 14 |
LIABILITIES | |
Bills payable | 15 |
Borrowings | 16 |
Deposits and other accounts | 17 |
Liabilities against assets subject to finance lease | |
Subordinated debts | 18 |
Deferred tax liabilities | |
Other liabilities | 19 |
NET ASSETS | |
REPRESENTED BY | |
Share capital | |
Reserves | |
(Deficit) / surplus on revaluation of assets - net of tax | 20 |
Unappropriated profit | |
CONTINGENCIES AND COMMITMENTS | 21 |
120,545,365
6,723,571
9,075,470
1,042,294,110
524,132,791
25,143,978
1,714,899
13,662,744
91,374,794
1,834,667,722
9,330,700
378,683,435
1,275,247,418
-
12,000,000
-
74,658,022
1,749,919,575
84,748,147
14,492,992
57,267,033
(1,189,907)
14,178,029
84,748,147
70,950,067
9,677,123
406,934
762,696,638
583,810,931
24,484,412
1,375,625
7,545,677
64,723,402
1,525,670,809
11,878,563
233,432,089
1,142,574,606
-
12,000,000
-
52,463,298
1,452,348,556
73,322,253
12,602,602
43,385,854
3,952,356
13,381,441
73,322,253
The annexed notes 1 to 38 form an integral part of these unconsolidated condensed interim financial statements.
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Chief Financial Officer | President & Chief Executive | Director | Director | Chairman |
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Askari Bank Ltd. published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 06:22:12 UTC.