Askari Bank profit jumps 25% to Rs13bn, declares Rs2 dividend

July 31, 2026 (MLN): Askari Bank Limited (PSX: AKBL) recorded a robust 25% increase in its net profit for the six months ended June 30, 2026, with profit after taxation climbing to Rs13.35bn from Rs10.70bn in the corresponding period last year.

Showing this strong bottom-line growth, the bank's earnings per share (EPS) expanded to Rs9.21 from Rs7.38 in 1HFY25.

The top-line showed healthy momentum, with total income rising 15% year-on-year to Rs57.05bn from Rs49.66bn in the prior period.

The core banking spread remained stable, with mark-up/return/interest earned growing 6% to Rs158.00bn. Mark-up/return/interest expensed rose at a slightly faster pace of 7% to Rs113.94bn, causing net mark-up/interest income to expand at a modest 3% to Rs44.06bn from Rs42.62bn.

The standout driver of the period was an exceptional surge in non-markup/interest income, which grew 85% to Rs12.98bn from Rs7.03bn.

This was powered by a near-fourfold jump in gain on securities to Rs3.64bn from Rs962.05m, a 78% surge in foreign exchange income to Rs3.13bn, and a strong 46% increase in fee and commission income to Rs5.22bn.

Dividend income rose 63% to Rs675.91m, while other income remained broadly stable at Rs317.20m.

On the expenditure side, operating expenses rose 40% to Rs29.19bn, Workers' Welfare Fund increased 15% to Rs334.70m, and other charges climbed 61% to Rs5.31m.

Total non-markup/interest expenses rose 40% to Rs29.53bn from Rs21.14bn the primary headwind of the period.

Profit before credit loss allowance eased 4% to Rs27.52bn. However, the credit loss allowance line swung decisively in the bank's favour, reversing from a charge of Rs636.62m last year to a net reversal of Rs622.29m in the current period, providing a meaningful boost to the pre-tax line.

As a result, profit before taxation rose marginally by less than 1% to Rs28.14bn from Rs27.88bn. The critical catalyst that amplified this modest pre-tax growth into a 25% bottom-line surge was a substantially lower tax burden.

Taxation declined 14% to Rs14.79bn from Rs17.19bn, providing the decisive tailwind that drove profit after taxation sharply higher.

The Board of Directors has announced an interim cash dividend of Rs2.0 per share (20%) for the half year ended June 30, 2026.

This is in addition to the first interim cash dividend of Rs2.0 per share (20%) already paid, bringing the total cash dividend declared for 1HFY26 to Rs4.0 per share.

Copyright Mettis Link News