Askari Bank Limited’s board of directors meeting July 23, 2013
Karachi, July 24, 2013 (PPI-OT): We wish to inform you that the Board of Directors of Askari Bank Limited (AKBL) in its meeting held on Tuesday, July 23, 2013 at 10:00 am at AKBL Head Office, Rawalpindi have recommended the following:
i) Cash Dividend – Nil
ii) Bonus Shares – Nil
iii) Right Shares – 55%
The Board has decided to issue 55% Right Share, that is, 55 shares for every 100 shares held to be issued at Par i.e. Rs. 10 per share.
The Book Closure for the entitlement of Right Issue as declared will be announced in due course of time after completing formalities and procedure under Section 86 of Companies Ordinance 1984 and the Companies (Issue of Capital) Rules, 1996.
The Financial results of the Bank, comprising of Profit and Loss Account for half year ended June 30, 2013 are attached as Annexure-I to this letter.
We will send 300 copies of printed accounts for distribution amongst the members of the Stock Exchange.
Condensed Interim Unconsolidated Profit and Loss Account (Un-audited) for the Half Year Ended June 30, 2013
June 30, 2013 June 30, 2012
For the for the half for the for the half
Quarter ended year ended quarter ended year ended
(Rupees in thousands) (Rupees in thousands)
Mark-up/ return/ interest earned 6,331,735 13,617,757 8,092,908 16,634,221
Mark-up/ return/ interest expense 4,667,429 9,766,977 5,796,536 11,970,435
--------- ---------- --------- ----------
Net mark-up/ interest income 1,664,306 3,850,780 2,296,372 4,663,786
Provision against non-performing loans and advances-net 6,369,302 6,583,700 266,742 727,536
Impairment loss on available for sale investments 85,165 135,873 10,350 10,350
Provision for diminution in the value of investments 311,156 427,677 - -
Provision against repurchase agreement lending - - - -
Bad debts written off directly - - - 1,043
--------- ---------- --------- ----------
6,765,623 7,147,250 277,092 738,929
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Net mark-up/ interest income after provisions (5,101,317) (3,296,470) 2,019,280 3,924,857
Non mark-up/ interest income
Fee, commission and brokerage income 329,842 593,086 365,416 620,188
Dividend income 30,541 107,266 261,093 739,004
Income from dealing foreign currencies 82,000 230,265 280,518 495,838
Gain on sale of securities-net 328,036 572,292 126,540 77,586
Unrealised gain / (loss) on revaluation of investments
Classified as held for trading-net - - - -
Other income 112,534 198,178 71,061 164,182
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Total non-markup/ interest income 882,953 1,701,087 1,104,628 2,096,778
--------- ---------- --------- ----------
(4,218,364) (1,595,383) 3,123,908 6,021,635
Non mark-up/ Interest expenses
Administrative expenses 2,464,467 4,663,103 2,293,896 4,390,901
Other provisions/ write offs 76,632 76,632 20,123 20,123
Other charges 202 226 34,519 34,597
--------- ---------- --------- ----------
Total non-markup/ interest expenses 2,541,301 4,739,961 2,348,538 4,445,621
--------- ---------- --------- ----------
(6,759,665) (6,335,344) 775,370 1,576,014
Extra ordinary/ unusual items - - - -
--------- ---------- --------- ----------
(Loss)/ profit before taxation (6,759,665) (6,335,344) 775,370 1,576,014
Taxation-current (341,498) (176,182) 2,116 249,940
- prior years’ - - - -
- deferred 2,421,269 2,404,271 248,619 227,309
--------- ---------- --------- ----------
2,079,771 2,228,089 250,735 477,249
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(Loss)/ profit after taxation (4,679,894) (4,107,255) 524,635 1,098,765
--------- ---------- --------- ----------
Basic and diluted (loss)/ earnings per share (Rupees) (5.76) (5.05) 0.65 1.35
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Please also note that the statement containing purpose of Right Issue, Benefits to the Bank and Financial Projections for the next three years signed by the members of Board of Directors is enclosed herewith as per Annexure-II.
Annexure II to Letter dated July 23, 2013
Financial Projection
Purpose and Benefits of the Right Issue
The Right Issue will help the Bank to meet regulatory Minimum Capital Requirement and Capital Adequacy Ratio. This will provide cushion for growth of Business which would result in Payouts to the Shareholders in future.
Financial Projections for the Next Three Years
Financial Projections Rs. In Millions
2014 2015 2016
Deposits 307,548 324,463 343,931
Advances 161,730 177,801 196,448
Total Assets 364,110 386,604 410,974
Profit before Tax 3,183 4,476 6,053
Profit after Tax 2,129 2,979 4,012
Earnings per Share 1.69 2.36 3.18
The Financial Projections presented above reflect the Board’s view on how the Bank is expected to grow and perform under the current and foreseeable economic and competitive environments.
1. Lt Gen Muhammad Mustafa Khan, HI (M) (Retd)-(Chairman)
2. Lt Gen Muhammad Zaki, HI, HI (M) (Retd)
3. Lt Gen Naeem Khalid Lodhi, HI, (M) (Retd)
4. Mr. Qaiser Javed
5. Mr. Nadeem Inayat
6. Mr. Asif Reza Sana
7. Mr. Manzoor Ahmed, Nominee NIT
8. Khawaja Jalaluddin Roomi
9. Syed Majeedullah Husaini-President and CE
For more information, contact:
M.A. Ghazali Marghoob
Company Secretary
Askari Bank Limited
AWT Plaza, The Mall, P.O. Box 1084,
Rawalpindi-Pakistan,
PABX: + 92 51 972150-3, 9063000
Fax: + 92 51 9272445- 927245