Askari Bank Limited reported its highest-ever annual profit in calendar year 2025, posting earnings of Rs. 22.9 billion with earnings per share of Rs. 15.77, reflecting an 8 percent year-on-year increase. The strong full-year performance highlights the bank’s ability to improve profitability despite pressure on margins and rising costs.
On a quarterly basis, the bank recorded earnings of Rs. 4.7 billion with earnings per share of Rs. 3.29. This represented a decline of 32 percent compared to the same quarter last year and a 36 percent drop on a quarter-on-quarter basis. Alongside the financial results, Askari Bank announced a final cash dividend of Rs. 1.8 per share for the fourth quarter of 2025, bringing the total dividend payout for the year to a record Rs. 5.0 per share.
According to Arif Habib Limited, the improvement in annual earnings was driven mainly by higher net interest income and stronger non-funded income. Net interest income increased to Rs. 87.7 billion, up 38 percent year-on-year, primarily due to a sharp reduction in interest expenses, which fell by 37 percent to Rs. 213.3 billion. This decline in funding costs more than offset a 25 percent year-on-year drop in interest income.
Non-funded income also showed solid growth, supported by a 51 percent increase in gains on securities, a 12 percent rise in fee income, and a 12 percent increase in dividend income. These income streams helped strengthen overall profitability during the year.
The bank recorded provisioning expenses of Rs. 1.8 billion in 2025, compared with a net provisioning reversal of the same amount in the previous year. Operating expenses increased sharply by 39 percent year-on-year to Rs. 50.9 billion, pushing the cost-to-income ratio up to 48 percent from 46 percent a year earlier. The effective tax rate also rose to 57 percent in 2025 from 53 percent in 2024.
On the balance sheet, Askari Bank’s deposits grew 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 by 16 percent to Rs. 586 billion. The advance-to-deposit ratio stood at 35.9 percent, while the investment-to-deposit ratio reached 124.4 percent.
Askari Bank shares are currently trading at a price-to-book ratio of 1.1 times and offer a dividend yield of 5.1 percent based on calendar year 2026 estimates.
