Askari Bank Limited (PSX: AKBL) reported a 12.6% increase in consolidated net profit for the nine months ended September 30, 2026, as stronger non-mark-up income, higher foreign exchange earnings and reversals of credit loss provisions supported its financial performance. The bank posted a profit after taxation of Rs20.49 billion during the period, compared with Rs18.20 billion in the corresponding nine months of 2025. Alongside the announcement of its financial results, the bank’s board declared an interim cash dividend of Rs2 per share for the period. Basic and diluted earnings per share increased to Rs14.14 from Rs12.56 a year earlier, reflecting the improvement in earnings available to shareholders.
Despite the growth in its cumulative nine-month earnings, Askari Bank recorded a lower quarterly profit compared with the same period last year. Net profit for the third quarter of calendar year 2026 stood at Rs7.15 billion, with earnings per share of Rs4.93, against Rs7.50 billion and earnings per share of Rs5.18 in the third quarter of 2025. The quarterly figures indicate that the bank’s earnings declined year-on-year during the three-month period, even as its overall performance for the first nine months remained positive. The difference between the quarterly and cumulative results highlights the contribution of income growth, changes in expenses, taxation and credit provisioning to the bank’s financial position during the reporting period.
Askari Bank’s net mark-up income, which represents the difference between mark-up income earned and the related expense, increased by 6.3% to Rs69.62 billion in 9MCY26 from Rs65.52 billion in the corresponding period of the previous year. Gross mark-up, return and interest earned rose 8% to Rs243.23 billion compared with Rs225.29 billion in 9MCY25. However, mark-up and interest expenses also increased by 8.7% to Rs173.61 billion from Rs159.77 billion. The increase in funding-related expenses limited the growth in net mark-up income, although the bank continued to generate a higher amount from its core income activities. The improvement in this segment provided a foundation for the bank’s broader revenue growth during the nine-month period.
Non-mark-up income emerged as a major contributor to Askari Bank’s overall performance, increasing 48.1% to Rs20.17 billion from Rs13.62 billion in the corresponding period of 2025. Foreign exchange income recorded one of the strongest gains, rising 105.6% to Rs6.84 billion from Rs3.32 billion. Income from gains on securities also increased by 42.6% to Rs4.33 billion compared with Rs3.03 billion a year earlier. Fee and commission income climbed 26% to Rs7.79 billion from Rs6.18 billion, while dividend income rose 15.6% to Rs767.23 million from Rs663.73 million. Other income increased 9.7% to Rs457.05 million. These gains across several revenue streams helped offset the pressure from rising operating costs and lifted the bank’s total income by 13.5% to Rs89.80 billion from Rs79.14 billion.
The growth in income was accompanied by a substantial increase in operating expenses. Askari Bank’s operating expenses rose 38.7% to Rs47.47 billion during the nine months ended September 2026, compared with Rs34.23 billion in the same period last year. Workers’ welfare fund expenses increased 19.2% to Rs569.91 million from Rs478.13 million, while other charges declined to Rs6.97 million from Rs20.86 million. As a result, total non-mark-up expenses expanded 38.4% to Rs48.05 billion from Rs34.73 billion. Profit before credit loss allowances, provisions and write-offs declined 6% to Rs41.74 billion from Rs44.40 billion. The increase in expenses therefore placed pressure on the bank’s operating profitability, despite the improvement in both core and non-mark-up income.
Credit provisioning played an important role in supporting the bank’s final earnings figure. Askari Bank recorded a net reversal of credit loss allowances and provisions amounting to Rs1.80 billion in 9MCY26, compared with a net charge of Rs808.18 million in the corresponding period of 2025. This change improved the bank’s profit before taxation to Rs43.54 billion, broadly unchanged from Rs43.60 billion a year earlier, representing a marginal decline of approximately 0.1%. The reversal of provisions indicates that the net provisioning position was more favourable during the current reporting period than in the previous year. This adjustment helped counter the impact of higher operating expenses and the decline in profit before credit loss allowances, keeping pre-tax earnings nearly stable.
Taxation also contributed to the increase in Askari Bank’s net profit. The bank reported a taxation charge of Rs23.05 billion for the nine-month period, down 9.3% from Rs25.40 billion in 9MCY25. With pre-tax profit remaining broadly stable and the tax charge declining, profit after taxation increased to Rs20.49 billion from Rs18.20 billion. The resulting 12.6% growth in net earnings was reflected in the increase in earnings per share to Rs14.14 from Rs12.56. The bank’s financial results show that higher foreign exchange income, stronger fee and commission revenue, increased gains on securities, net reversals of credit loss provisions and lower taxation were important factors behind the improvement in its bottom line.
Askari Bank’s nine-month results present a mixed picture of revenue growth and cost pressures. Total income increased at a faster pace than net mark-up income, demonstrating the growing contribution of non-mark-up revenue to the bank’s financial performance. At the same time, operating expenses rose considerably, while profit before taxation remained almost unchanged from the previous year. The reduction in the tax charge and the favourable movement in credit loss provisions helped translate higher total income into stronger after-tax earnings. The declared interim cash dividend of Rs2 per share accompanies the reported profit growth, while the decline in third-quarter net profit indicates that the bank’s performance varied across the reporting period.
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