The Askari Bank Limited (AKBL) has declared its annual financial performance which ended on December 31 2025 and claimed it has made the most annual earnings of 22.9 billion in its history.
The bank had recorded an 8 percent annual (YoY) rise in profitability and the Earnings Per Share (EPS) stood at Rs. 15.77.
Besides the increased record breaking profits, the Board of Directors declared a final cash dividend of Rs. 1.8 per share in the fourth quarter. This makes it cumulative annual dividend of record Rs. 5.0 per share of CY25 which will reward shareholders in a challenging economic environment.
Askari Bank Quarterly Performance
While the annual figures were historic, the fourth quarter showed a slowdown.
According to financial analysis by Arif Habib Limited, the annual earnings growth was primarily driven by:
- Net Interest Income (NII): NII surged by 38 percent YoY to Rs. 87.7 billion. This growth was achieved despite a 25 percent drop in interest income, as the bank managed a sharper 37 percent reduction in interest expenses (down to Rs. 213.3 billion).
- Non-Funded Income (NFI): The bank witnessed substantial growth in NFI, supported by:
- 51% increase in gains on securities.
- 12% growth in fee commission income.
- 12% rise in dividend income.
Expenses and Tax Impact
- Operating Expenses: The bank saw a sharp rise in inflation-driven costs, with operating expenses jumping 39 percent YoY to Rs. 50.9 billion. This pushed the cost-to-income ratio to 48 percent (up from 46 percent in CY24).
- Taxation: The effective tax rate increased significantly to 57 percent in CY25, compared to 53 percent in the previous year.
- Provisions: The bank recorded a provisioning expense of Rs. 1.8 billion, a shift from the net provisioning reversal of Rs. 1.8 billion recorded in CY24.
Balance Sheet Expansion: Investments over Advances
Askari Bank’s balance sheet showed a clear strategy of shifting towards investments:
- Deposits: Grew by 20 percent to Rs. 1.6 trillion.
- Investments: Surged by 34 percent to reach Rs. 2.0 trillion.
- Advances: Declined by 16 percent to Rs. 586 billion.
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