Askari Bank Limited (PSX: AKBL) has reported a profit after tax of Rs23.02 billion for the year ended December 31, 2025, representing an 8.32% increase compared to Rs21.26 billion in CY24. Earnings per share (EPS) improved to Rs15.77 from Rs14.58 last year, reflecting a steady performance amid a challenging macroeconomic environment. The bank also announced a final cash dividend of Rs1.75 per share (17.5%) in addition to interim dividends of Rs3.25 per share (32.5%), taking the total cash payout for the year to Rs5.00 per share.
The bank’s performance was supported by strong growth in non-markup income, which rose 16.41% year-on-year to Rs18.66 billion. Fee and commission income increased 12.29% to Rs8.48 billion, while foreign exchange income grew 5.41% to Rs4.30 billion. Gains on securities contributed significantly, surging 51.36% YoY to Rs4.35 billion. Dividend income increased modestly by 11.77% to Rs0.93 billion. These factors helped diversify the bank’s revenue base, with total income climbing 33.48% YoY to Rs106.36 billion, mitigating pressure on core spreads.
On the expense side, operating costs increased 39.61% YoY to Rs50.25 billion, while workers’ welfare fund charges rose 12.64% to Rs0.62 billion. Overall, total non-markup and interest expenses grew 39% YoY to Rs50.89 billion, partially offsetting the income gains. Despite this, profit before credit loss allowance improved 28.79% to Rs55.47 billion. The bank maintained stable asset quality, with credit loss allowances contained at Rs1.82 billion.
Profit before taxation increased 19.57% YoY to Rs53.65 billion, while taxation rose 29.71% to Rs30.63 billion. Consequently, profit after tax reached Rs23.02 billion, demonstrating an 8.32% year-on-year growth. The bank’s strategic focus on income diversification, improved net mark-up, and disciplined cost management contributed to these positive results.
During CY25, net mark-up/return on Islamic financing and other assets remained strong despite pressure on interest spreads, totaling Rs87.70 billion, up 37.78% from Rs63.65 billion in the prior year. Fee and commission income, foreign exchange gains, and securities-related profits strengthened the bank’s non-interest revenue, providing a robust buffer against macroeconomic volatility.
The dividend policy highlights Askari Bank’s commitment to rewarding shareholders, with the total cash payout of Rs5.00 per share for CY25 reflecting confidence in sustainable profitability and prudent capital management. Analysts note that the bank’s performance demonstrates resilience and effective income diversification in a competitive banking sector, with continued focus on enhancing fee-based and non-markup revenue streams.
Askari Bank’s CY25 results reinforce its position among Pakistan’s mid-sized banks with balanced growth, stable asset quality, and disciplined expense management. The bank’s strategic execution ensures continued shareholder value while maintaining strong financial fundamentals in line with regulatory requirements and market expectations.
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