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Askari Bank has reported a 32% year-on-year increase in profit for the first half of calendar year 2025 (1HCY25), reflecting strong operational performance despite challenges in interest margins and rising costs.
The bank’s mark-up earned grew 31% YoY to Rs148,560 million, while mark-up expenses increased by 41% to Rs106,097 million. This faster rise in expenses slightly squeezed the bank’s net interest income, which declined by 1% to Rs42,463 million compared to Rs42,764 million in 1HCY24.
Non-interest income decreased by 10% YoY to Rs6,744 million, but total revenues rose by 49% YoY to Rs49,206 million, partly driven by reversals in provisions. Profit before tax (PBT) jumped 71% YoY to Rs27,754 million, while profit after tax (PAT) increased 32% YoY to Rs17,129 million. Earnings per share (EPS) also rose 32% to Rs7.33.
Quarterly results showed mixed trends. In 2QCY25, net interest income fell 5% YoY to Rs19,142 million, and non-interest income declined by 12%. Profit before tax grew 18% YoY, but PAT fell 20% YoY to Rs5,590 million due to higher taxation and changes in provisions. Quarterly EPS dropped to Rs3.86 from Rs4.83 a year earlier.
The effective tax rate increased sharply from 50% to 62% YoY, putting pressure on net profitability. On a positive note, operational efficiency improved as the cost-to-income ratio declined from 50% to 42%, reflecting better management of expenses.
Overall, Askari Bank’s half-year performance demonstrates resilience, with strong PAT growth supported by reversals in provisions and disciplined cost management. However, the rising tax burden and narrower net interest margins highlight ongoing challenges for maintaining consistent profitability.
