Earnings surprises.

Byline: Shabbir Kazmi

EFU General Insurance Company holds a leading position in non-life and non-life Takaful business. It has created history by becoming the first company to underwrite premiums (including Takaful contributions) of over Rs22 billion inside Pakistan. EFU General is holding Company of EFU Life Assurance. The consolidated underwritten Premium (including Takaful) was Rs51.5 billion as compared to Rs42.5 billion in the preceding year. In spite of volatile stock market during the year the Company earned net investment income of Rs2,262 million as compared to Rs1,612 million in the preceding year.

The market capitalization increased from Rs20 billion as on 31st December 2018 to Rs22 billion as on 31st December 2019. Profit after tax of the Company rose to Rs2,609 million (EPS: Rs13.04), from Rs2,171 million last year (EPS: Rs10.86). The Board of Directors recommended final dividend of Rs5.50 per share, in addition to already paid three interim dividends, taking total distribution for the year to Rs10.00 per share. The Consolidated Total Assets rose to Rs174 billion from Rs159 billion as on 31st December 2018.

The company maintained highest credit rating in the insurance industry of Pakistan from A.M. Best. A.M. Best once again reaffirmed Financial Strength Rating of "B+" and long-term Issuer Credit Rating of "bbb-" with positive Outlook for both. In addition to this the local rating agencies i.e. VIS and PACRA have reaffirmed Credit rating of AA+ with stable outlook.

Askari Bank has posted an all-time high profit of Rs7.00 billion for 2019. The Bank's previous highest profit was Rs5.26 billion posted in 2017. The Bank recorded profit growth of 58 percent from the previous year in which it made a profit of Rs4.431 billion, showing an increase of Rs2.58 billion profit in one year. High-interest rates and profit margins on non-markup avenues increased the profitability of the Bank. The Bank earned Rs22 billion from interest income and Rs.29.5 billion from non-markup avenues. Askari Bank left behind Faysal Bank, which recorded a profit of Rs6.00 billion for 2019.

The Bank is likely to take edge over Habib Metro Bank in terms of profitability and to be the 11th most profitable bank in the country. The bank earnings per share surged to Rs5.57 from RS3.52. The Board of Directors announced a final cash dividend of Rs1.5 per share for its shareholders. Askari Bank is set to enhance...