Askari Bank Ltd Posts Record Quarterly Profit of Rs. 7.5 billion

Askari Bank Limited (AKBL) posted a record profit after tax (PAT) of Rs. 7.5 billion for 3QCY25. It translated into earnings per share (EPS) of Rs. 5.18, up 112 percent year-over-year compared to Rs. 3.5 billion (EPS: Rs. 2.44) in the same quarter last year. This takes 9MCY25 profitability to Rs. 18.1 billion, up 28 percent YoY. Alongside the results, the bank announced an interim dividend of Rs. 1.25 per share for the quarter, following a Rs. 2.00 per share payout in the previous quarter. Before this year, the last interim dividend was declared in 1QCY14 at Rs. 1.0 per share. Net interest income rose 21 percent YoY to Rs. 22.9 billion, driven by improved spreads and a 46 percent reduction in interest expense. Non-funded income grew 69 percent YoY, supported by higher capital gains and FX income. Operating expenses increased 23 percent YoY to Rs. 13.6 billion, yet the cost-to-income ratio improved to 41.6 percent, from 55.4 percent last year. On the provisioning front, AKBL booked a reversal of Rs. 1.7 billion in 3QCY25 versus a charge of Rs. 2.6 billion in the same quarter of 2024. Advances increased 13 percent YoY, while deposits rose 11 percent YoY to Rs. 1.63 trillion, maintaining a solid balance sheet footing. Asset quality also improved, with lower borrowing reliance and strong credit discipline. The bank recorded an effective tax rate of 39.4 percent for the quarter, compared to 41.6 percent in the same period last year.