Askari Bank Profit 2025 marked a historic milestone as Askari Bank Limited (PSX: AKBL) posted its highest-ever annual earnings, reflecting strong income growth and improved profitability during the year.
Askari Bank Profit 2025: Annual and Quarterly Performance
For calendar year 2025, Askari Bank recorded a net profit of Rs. 22.9 billion, translating into earnings per share (EPS) of Rs. 15.77. This represents an 8 percent year-on-year increase, highlighting consistent earnings momentum despite challenging market conditions.
On a quarterly basis, earnings for the fourth quarter stood at Rs. 4.7 billion with an EPS of Rs. 3.29. This figure showed a decline of 32 percent year-on-year and 36 percent quarter-on-quarter, mainly due to higher costs and provisioning pressures.
Dividend Announcement Alongside Askari Bank Profit 2025
Along with the financial results, Askari Bank announced a final cash dividend of Rs. 1.8 per share for 4QCY25. This brought the total annual dividend for CY25 to a record Rs. 5.0 per share, reinforcing shareholder returns amid strong profitability.
Key Drivers Behind Askari Bank Profit 2025 Growth
According to Arif Habib Limited, the improvement in Askari Bank Profit 2025 was largely driven by higher net interest income and stronger non-funded income streams.
Net Interest Income Performance
Net interest income rose sharply to Rs. 87.7 billion, showing a 38 percent year-on-year increase. This growth was primarily supported by a significant decline in interest expenses, which dropped to Rs. 213.3 billion, down 37 percent year-on-year. The reduction in interest costs more than offset a 25 percent year-on-year fall in interest income.
Non-Funded Income Contribution
Non-funded income also played a vital role in supporting Askari Bank Profit 2025. Major contributors included gains on securities, which increased by 51 percent year-on-year, along with fee income growth of 12 percent and dividend income rising by 12 percent during the year.
Expenses, Taxation, and Provisions Impact
During CY25, the bank recorded provisioning expenses of Rs. 1.8 billion, compared to a net provisioning reversal of Rs. 1.8 billion in the previous year. Operating expenses rose significantly by 39 percent year-on-year to Rs. 50.9 billion, pushing the cost-to-income ratio to 48 percent versus 46 percent in CY24.
The effective tax rate also increased, standing at 57 percent in CY25 compared with 53 percent in the previous year.
Balance Sheet Highlights for Askari Bank Profit 2025
On the balance sheet front, deposits grew strongly to Rs. 1.6 trillion, reflecting a 20 percent year-on-year increase. Investments expanded to Rs. 2.0 trillion, up 34 percent year-on-year, while advances declined to Rs. 586 billion, down 16 percent year-on-year.
The advance-to-deposit ratio (ADR) stood at 35.9 percent, whereas the investment-to-deposit ratio (IDR) reached 124.4 percent by the end of CY25.
Stock Valuation Outlook
Askari Bank’s stock is currently trading at a price-to-book ratio of 1.1x, offering an attractive dividend yield of 5.1 percent based on CY26 estimates, making Askari Bank Profit 2025 a key point of interest for investors.
