IGI Securities Limited - Flash Note (October 18, 2022)

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IGI Securities Limited – Flash Note (October 18, 2022)

October 18, 2022

Karachi, October 18, 2022 (PPI-OT): Commercial Banks – Askari Bank Limited

Earnings: Askari Bank Limited (AKBL) announced its financial result for the third quarter of the year 2022. As per the financial result, the bank reported earnings of PKR 4.4bn (PKR 3.5/share) significantly up when compared to last year of PKR 2.7bn (PKR 2.1/share), up by +65%y/y. This takes 9mCY22 total earnings to PKR 10.8 or PKR 8.5/share compared to last year PKR 6.8bn or PKR 5.4/share; up by +59%y/y.

Dividends/Payouts: The bank did not announce an interim cash dividend for this quarter.

Operating performance: During the period under review, the bank reported net-interest income of PKR 11.9bn (up by 36%y/y) and non-interest income of PKR 3.4bn (up by 70%y/y). As a result total revenue of the bank stood at PKR 15.3bn (up by 42%y/y). Moreover, the bank recorded operating expenses of PKR 6.3bn (up by 25%y/y) that improved bank’s cost/income ratio to 41.4% (last year: 47.1%). The bank booked a provision charge of PKR 0.1bn.