Askari Bank Limited has reported a record-breaking financial performance for calendar year 2025, registering its highest-ever annual profit as higher earnings and improved income streams boosted overall results. The announcement places the bank among the strongest performers in Pakistan’s banking sector during the year.
Askari Bank has posted its highest-ever annual profit for 2025, driven by strong earnings growth and record dividends.
Askari Bank Profit Performance in 2025
For CY2025, Askari Bank posted a net profit of Rs. 22.9 billion, reflecting an 8% year-on-year increase. Earnings per share (EPS) rose to Rs. 15.77, highlighting sustained profitability despite a challenging economic environment.
On a quarterly basis, profits stood at Rs. 4.7 billion, lower compared to the same period last year, mainly due to higher expenses and provisioning.
Record Dividend Announcement for Shareholders
Alongside its financial results, the bank announced a final cash dividend of Rs. 1.8 per share for the fourth quarter of 2025.
This takes the total dividend for CY2025 to Rs. 5.0 per share, the highest annual dividend in Askari Bank’s history, offering strong returns to shareholders.
What Drove Askari Bank’s Earnings Growth
Stronger Net Interest Income
Net interest income increased sharply due to a significant drop in interest expenses, which declined by 37% year-on-year. Although interest income fell, the reduction in funding costs more than offset the impact, pushing net interest income to Rs. 87.7 billion.
Improved Non-Funded Income
Non-funded income also played a key role, supported by:
-
Higher gains on securities
-
Increased fee-based income
-
Growth in dividend income
These factors collectively strengthened overall revenue streams.
Rising Costs and Provisions
Despite strong earnings, some pressure points remained:
-
Provisioning expense: Rs. 1.8 billion in CY2025
-
Operating expenses: Increased by 39% year-on-year to Rs. 50.9 billion
-
Cost-to-income ratio: Rose to 48%
The effective tax rate also increased, impacting net profitability.
Balance Sheet Snapshot (2025)
| Indicator | Position |
|---|---|
| Deposits | Rs. 1.6 trillion |
| Investments | Rs. 2.0 trillion |
| Advances | Rs. 586 billion |
| ADR | 35.9% |
| IDR | 124.4% |
Deposit and investment growth remained strong, while advances declined, reflecting a cautious lending approach.
Market Valuation Overview
As of early 2026:
-
Price-to-book ratio: Around 1.1x
-
Dividend yield (CY26E): Approximately 5.1%
This positions the stock as relatively attractive for income-focused investors.
Key Questions Investors Are Asking
Did Askari Bank make record profit in 2025?
Yes, 2025 marked the highest annual profit in the bank’s history.
What was Askari Bank’s EPS for 2025?
Earnings per share stood at Rs. 15.77.
How much dividend did Askari Bank declare for 2025?
The total dividend reached a record Rs. 5.0 per share.
What supported earnings growth?
Lower interest expenses and stronger non-funded income were the main drivers.
Did expenses increase in 2025?
Yes, operating expenses rose sharply, impacting quarterly performance.
Conclusion
Askari Bank’s 2025 results underline a year of exceptional profitability, supported by cost efficiency on the funding side and diversified income sources. While rising expenses and higher taxes moderated quarterly growth, the bank’s record profit and dividend payout highlight its solid financial footing. Going forward, maintaining balance between growth, costs, and asset quality will be key to sustaining momentum.
