β‘ Flash Summary
Askari Bank Limited (AKBL) reported unconsolidated financial results for the nine-month period ended September 30, 2025. The bank achieved a 56% increase in profit before tax, reaching Rs. 43.4 billion. Profit after tax rose by 29% to Rs. 18.1 billion, and earnings per share improved to Rs. 12.46 from Rs. 9.68. Total revenues grew by 42% to Rs. 78.3 billion, driven by net markup income, while operating expenses increased by 30% due to branch expansion and technological investments.
π Key Takeaways
- π Profit before tax increased by 56% to Rs. 43.4 billion.
- π° Profit after tax grew by 29% to Rs. 18.1 billion.
- πΈ Earnings per share improved to Rs. 12.46 from Rs. 9.68.
- π¦ Total revenues increased by 42% to Rs. 78.3 billion.
- β¬οΈ Net markup income increased by 47% due to growth in current accounts.
- π’ Non-markup income grew by 18.8% to Rs. 13 billion.
- Π·Π°ΡΡΠ°ΡΡ Operating expenses increased by 30% due to expansion and digitization.
- π Cost-to-income ratio improved to 44% from 48%.
- π¦ Customer deposits grew by 11% to Rs. 1.52 trillion.
- π Advances declined by 20% due to maturity of short-term facilities.
- β¬οΈ Credit loss allowance decreased to Rs. 806 million from Rs. 1.2 billion.
- π¦ Infection ratio stood at 5.9%, with NPL coverage ratio at 113%.
- πͺ Leverage ratio recorded at 3.70%, and capital adequacy ratio at 22.70%.
- βͺοΈ 49% of branch network is Islamic, offering Shariah-compliant services.
- βοΈ Long-term entity rating reaffirmed at βAA+β by PACRA, outlook βStableβ.
π― Investment Thesis
AKBL is a BUY. The bank shows solid growth, especially in profit before tax, revenues, and earnings per share. It maintains a strong capital position and a Stable outlook. The strategic expansion into Islamic banking and digitization is promising. Target price: 15.50 PKR. Time horizon: 12 months. I expect share price to rise because profitability and asset quality have increased.
Disclaimer: AI-generated analysis. Not financial advice.