By Qudsia Bano ISLAMABAD, May 31 (INP-WealthPK): Askari Bank Limited is actively pursuing the growth of Shariah-compliant banking in Pakistan. The bank established a specialised Islamic Banking Services Division (IBSD) in 2006 to provide Shariah-compliant banking solutions. Under the IBSD, the Askari Ikhlas Islamic Banking has grown significantly in a short period of time, and currently offers a comprehensive variety of personal banking, corporate banking, Islamic treasury, trade services, and Banca-Takaful solutions. The bank’s goal is to establish an effective banking system that promotes economic justice and social welfare while adhering to Shariah principles. Through its 105 dedicated Islamic banking branches (including three sub-branches) and seven Islamic banking windows (IBWs) in the country's major cities, Askari Ikhlas Islamic Banking meets the banking needs of its valued customers.

The pattern of shareholding – Askari Bank Limited As of December 31, 2021
Categories of Shareholders	Shares Held	Percentage
Directors, CEO, Children	3,000	0.0002
Associated Companies & Related Parties	920,398,417	73.0324
Executives / Employees of the Bank	86,835	0.0069
Banks, DFI & NBFI, Insurance Companies, Takaful,
Modarabas, Pension Funds	4,869,696	0.3864
ICP	3,737	0.0003
Insurance Companies	24,724,153	1.9618
Mutual Funds & Modarabas	30,421,176	2.4139
General Public
Local	237,538,153	18.8483
Foreign	96,127	0.0076
Others	37,260,109	2.9565
Foreign investors (Foreign Companies)	4,858,777	0.3855
Total	1,260,260,180	100.000%
Source: Company financial Report

Askari Bank's operational profit (profit before provisions and taxes) for the year 2021 was Rs20.59 billion, up from Rs19.74 billion the previous year. The profit-after-tax, however, fell by 10.2% to Rs9.70 billion in 2021 from Rs10.80 billion the previous year, owing to higher provisions against non-performing assets. Its net provisions increased to Rs4.94 billion in 2021 from Rs1.97 billion the previous year, reflecting the bank's prudent approach to provisioning against certain borrowers. The earnings per share in 2021 were Rs7.70, compared to Rs8.57 per share the previous year. Non-mark-up revenues, on the other hand, fell by 3.3% year-over-year due to poor prospects for investment gains, which fell by 68.1%. Compensation and other operating expenses grew by 4.9% over the previous year. The operating expense to the revenue ratio was kept at 50%. The drop was mostly attributable to a 2.5x YoY increase in provisions and write-offs, which increased to Rs5 billion in 2021 from Rs1.9 billion in 2020. As a result, the bank's earnings per share dropped to Rs7.71 from Rs8. Comparison with KSE-100 Quarterly Results and Future Outlook The financial results of Askari Bank for the quarter ended March 31, 2022, are summarised as under:

ASBK Financial Performance for the Quarter ended March 31, 2022 (Rupees in Millions)
	March 31, 2022	March 31, 2021
Net mark-up and non-fund income Administrative and other expenses	10,981 (5,056)	10,205 (5,883)
Operating profit Provisions reversals - net	5,925 175	4,322 170
Profit before taxation Taxation	6,100 (2,493)	4,492 (1,750)
Profit after taxation	3,607	2,742
Basic earnings per share - Rupees	2.86	2.18
Source: ASBK Quarterly Report March 2022

  The operating profit for the quarter ended March 31, 2022, was Rs5.9 billion, up 27% from Rs4.3 billion in the same period of last year. The profit-after-tax climbed by 24% to Rs3.6 billion from Rs2.7 billion during the previous year’s quarter. The earnings per share during January-March quarter were Rs2.86 compared to Rs2.18 during the previous year’s quarter. During the current quarter, net aggregate revenues climbed by 7.6% to Rs11 billion, owing to an increase of 11% in net mark-up income, driven mostly by volumetric expansion. Due to lower gain on securities, non-mark-up revenue fell by 2.6%, but fee commissions, dividend income, foreign exchange and other income climbed by 32%, more than compensating for the loss on securities. Askari Bank is ideally positioned for long-term expansion and increased value offering for shareholders. The bank will continue to expand its business with improved governance, compliance, credit, and risk management. The bank intends to expand its retail market share, notably in low-cost deposits and consumer products.