Askari Bank Limited Askari Bank Limited (PSX: AKBL) reported an 8% decline in its profit after tax, which fell to Rs6.58 billion for the quarter ended March 31, 2026, compared to Rs7.16 billion in the same period last year.
The decline came despite strong growth in non-funded income, as sharply rising operating expenses outweighed overall revenue gains and pressured profitability.
Income Performance
On the funded side, mark-up/interest income slightly declined by 1.66% to Rs74.68 billion, while interest expenses fell 2.75% to Rs52.53 billion. As a result, net interest income posted a marginal rise of 1.04%, reaching Rs22.15 billion.
Non-funded income showed strong growth of 45.34%, rising to Rs5.39 billion. This increase was mainly driven by a 135.58% surge in gains on securities, along with higher fee income (+25.22%) and foreign exchange income (+18.28%). Dividend income also increased slightly, while other income declined.
Overall, total income rose 7.45% to Rs27.54 billion.
Expenses and Profitability Pressure
Operating expenses surged 38.14% to Rs13.74 billion, significantly outpacing income growth. Total non-mark-up expenses increased 37.35%, leading to margin compression.
Profit before credit loss allowance declined 12% to Rs13.67 billion.
However, the bank recorded a credit loss reversal of Rs81.5 million compared to a provision charge last year, offering some support to earnings.
Profit before tax fell 10% to Rs13.75 billion, while after-tax profit stood at Rs6.58 billion, down 7.99% year-on-year. Earnings per share also declined to Rs4.54 from Rs4.94. Despite the decline in profitability, the bank declared an interim cash dividend of Rs2.0 per share (20%) for Q1 2026, signaling continued shareholder returns.
