Askari Bank Limited (PSX: AKBL), one of Pakistan’s prominent commercial banks, has announced strong financial results for the nine months ending September 30, 2025. The bank reported a profit after tax (PAT) of Rs18.2 billion, representing a solid 28.53 percent year-on-year increase compared to Rs14.2 billion in the corresponding period of 2024. This growth underscores the bank’s robust financial management, effective cost discipline, and sustained income generation despite challenging economic conditions.
The bank’s earnings per share (EPS) also saw a healthy rise of 28.56 percent, reaching Rs12.56 compared to Rs9.77 last year. Total income surged 41.65 percent to Rs79.1 billion from Rs55.9 billion, reflecting strong growth in both mark-up and non-mark-up income streams. The bank’s ability to maintain double-digit income growth demonstrates its diversified revenue base and resilience amid fluctuating interest rate environments.
Askari Bank’s net mark-up or interest income witnessed a significant jump of 47.22 percent, reaching Rs65.5 billion. The improvement came despite a 27.75 percent decline in mark-up or return earned, which stood at Rs225.3 billion. This was primarily offset by a sharper 40.23 percent reduction in mark-up or return expensed, amounting to Rs159.8 billion. The margin expansion indicates prudent balance sheet management and optimized funding costs, enabling the bank to sustain profitability even under tight monetary policy conditions.
Non-mark-up income also strengthened, increasing by 19.87 percent to Rs13.6 billion compared to Rs11.4 billion a year ago. Fee and commission income rose 14.35 percent to Rs6.2 billion, reflecting growth in transactional banking, digital services, and trade-related business. Dividend income posted a marginal rise of 1.89 percent to Rs663.7 million, while gain on securities soared by 128.64 percent to Rs3.0 billion, highlighting the bank’s strong investment performance. However, foreign exchange income fell 6.97 percent to Rs3.3 billion, mainly due to lower volatility in currency markets.
Operating expenses climbed 30.39 percent to Rs34.2 billion, driven by inflationary pressures and higher administrative costs linked to digital transformation and branch operations. The Workers’ Welfare Fund contribution increased by 16.83 percent to Rs478.1 million, while other charges declined sharply by 67.60 percent to Rs20.9 million. Despite rising operational expenditures, Askari Bank’s profit before credit loss allowance rose impressively by 52.40 percent to Rs44.4 billion from Rs29.1 billion last year.
Provisions and write-offs dropped 34.44 percent to Rs808.2 million, reflecting improved credit quality and prudent risk management. Consequently, profit before taxation increased 56.23 percent to Rs43.6 billion compared to Rs27.9 billion last year. Although the taxation expense surged 84.77 percent to Rs25.4 billion, the bank still managed to post a healthy bottom line of Rs18.2 billion.
The Board of Directors declared a second interim cash dividend of Rs1.25 per share (12.5%) for the quarter ended September 30, 2025. This comes in addition to the first interim cash dividend of Rs2.00 per share (20%) already paid earlier in the year, bringing the total payout to 32.5 percent for 2025 so far.
Askari Bank’s consistent performance underscores its focus on sustainable profitability, strong capital adequacy, and technological modernization aimed at enhancing customer experience and operational efficiency. The results reaffirm its standing as one of Pakistan’s best-performing private banks amid evolving macroeconomic dynamics.
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