Askari Bank’s Profit Surges 24% Amid Strong Non-Markup Income

Karachi: Askari Bank Limited (AKBL) has reported a significant rise in its net profit after tax (NPAT) for the third quarter of the calendar year 2025, reaching PkR7.5 billion, equivalent to an earnings per share (EPS) of PkR5.1. This marks a 24% increase year-on-year and a 112% increase quarter-on-quarter, exceeding market expectations largely due to better-than-anticipated non-markup income, primarily from gains on the sale of securities.

The bank has announced an interim cash payout of PkR1.25 per share, bringing the total cash payout for the first nine months of 2025 to PkR3.25 per share.

Net interest income (NII) for the quarter stood at PkR22.9 billion, reflecting a 21% year-on-year and 11% quarter-on-quarter increase. The growth in the asset book was counterbalanced by a decline in yields.

The bank’s mark-up earned was recorded at PkR76.6 billion, showing a decrease of 27% year-on-year but a slight increase of 5% quarter-on-quarter. In contrast, the mark-up expensed was PkR53.7 billion, down by 38% year-on-year with a 3% quarter-on-quarter rise. The estimated net interest margins (NIMs) improved to 3.73% in the third quarter from 3.65% in the same period last year.

Non-interest income surged to PkR6.6 billion, marking an 81% year-on-year and 98% quarter-on-quarter increase. This growth was driven by substantial improvements across various categories. Fee income rose by 49.7% year-on-year and 42.1% quarter-on-quarter, while foreign exchange income increased by 35.4% year-on-year and 50% quarter-on-quarter. Additionally, the bank recorded a gain on the sale of securities amounting to PkR2.1 billion, a significant increase compared to PkR427 million and PkR133 million in the third quarter of 2024 and the second quarter of 2025, respectively.