AKBL

⚡ 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.

⚡ Flash Summary

Askari Bank Limited (AKBL) reported its performance review for the nine months ended September 30, 2025. The bank has shown substantial growth in key areas, including a 13% year-to-date (YTD) increase in total assets, reaching Rs 2.8 trillion, and an 11% YTD increase in deposits, totaling Rs 1.5 trillion. Profit before tax surged by 56% year-over-year (YoY) to Rs 43.3 billion. The bank’s capital adequacy also improved, with a notable increase in mobile app users by 55%, reflecting a strong digital presence.

📌 Key Takeaways

• 📈 Total Assets: Increased by 13% YTD to Rs 2.8 trillion.
• 💰 Deposits: Grew by 11% YTD to Rs 1.5 trillion.
• 🏦 Current Accounts: Rose by 25% YTD to Rs 489 billion.
• 📉 Advances: Decreased by 22% YTD to Rs 546 billion.
• 📊 Profit (Pre-Tax): Significant YoY increase of 56% to Rs 43.3 billion.
• ⚖️ Total Equity: Increased by 16% YTD to Rs 141 billion.
• 💡 Cost to Income Ratio: Stood at 44%.
• 🌱 Return on Equity: Achieved 18%.
• 📱 Mobile App Users: Substantial growth of 55%, reaching 817K users.
• 💳 ATMs/CDMs Recyclers: Increased by 11%, totaling 882.
• 🤝 Capital Adequacy: Improved by 1.30% from 21.40% to 22.70% as of September 30, 2025.
• 🧑‍💼 Employees: Increased by 884, reaching 10,327.
• ⭐ Share Price: As of October 31, 2025, share price is Rs 97.9, with a market cap of Rs 142 billion, and a YTD increase of 156%.
• 🥇 YoY Growth: AKBL showed a 120% YTD growth in Sep’25

🎯 Investment Thesis

AKBL presents a BUY opportunity based on its strong growth in assets, deposits, and pre-tax profit. The increasing digital presence and improved capital adequacy ratio further support this recommendation. The current undervaluation, as indicated by the EPS and share price, suggests potential for capital appreciation. I estimate a price target of Rs 120 within a 12-month time horizon, contingent on continued growth and effective risk management.