⚡ 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.

📌 Key Takeaways

• 📈 Profit before tax increased by 56% to Rs. 43.4 billion.
• 💰 Profit after tax grew by 29% to Rs. 18.1 billion.
• 💸 Earnings per share improved to Rs. 12.46 from Rs. 9.68.
• 🏦 Total revenues increased by 42% to Rs. 78.3 billion.
• ⬆️ Net markup income increased by 47% due to growth in current accounts.
• 🏢 Non-markup income grew by 18.8% to Rs. 13 billion.
• затраты Operating expenses increased by 30% due to expansion and digitization.
• 📉 Cost-to-income ratio improved to 44% from 48%.
• 🏦 Customer deposits grew by 11% to Rs. 1.52 trillion.
• 📉 Advances declined by 20% due to maturity of short-term facilities.
• ⬇️ Credit loss allowance decreased to Rs. 806 million from Rs. 1.2 billion.
• 🦠 Infection ratio stood at 5.9%, with NPL coverage ratio at 113%.
• 💪 Leverage ratio recorded at 3.70%, and capital adequacy ratio at 22.70%.
• ☪️ 49% of branch network is Islamic, offering Shariah-compliant services.
• ⭐️ Long-term entity rating reaffirmed at ‘AA+’ by PACRA, outlook “Stable”.

🎯 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.