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
                                                                  ---------       ----------      ---------      ----------
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
                                                                  ---------       ----------      ---------      ----------
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
                                                                  ---------       ----------      ---------      ----------
(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
                                                                  ---------       ----------      ---------      ----------

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

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