Karachi: Askari Bank Ltd. (AKBL) has reported its financial results for the first quarter of the calendar year 2026, revealing a net profit after tax (NPAT) of PKR 6.6 billion, translating to earnings per share (EPS) of PKR 4.5. This marks an 8% year-over-year decrease but a 37% increase quarter-over-quarter. The bank's performance exceeded expectations due to higher capital gains and lower administrative expenses. Additionally, an interim cash dividend of PKR 2.0 per share was announced.
According to AKD Securities Limited, the bank's net interest income (NII) was recorded at PKR 22.2 billion for the quarter, reflecting a 1% year-over-year increase and remaining flat quarter-over-quarter. This was driven by a 23% year-over-year and 6% quarter-over-quarter growth in average earning assets, which offset a decline in yields. The bank's investment portfolio grew by 34% year-over-year and 9% quarter-over-quarter to PKR 2.2 trillion by March 2026, supported by a 22% year-over-year and 4% quarter-over-quarter increase in deposits to PKR 1.3 trillion, alongside a 36% year-over-year and 29% quarter-over-quarter rise in borrowings to PKR 1.3 trillion.
Furthermore, the bank recorded mark-up earnings of PKR 74.7 billion, a decrease of 2% year-over-year and 1% quarter-over-quarter, while mark-up expenses were noted at PKR 52.5 billion, a decline of 3% year-over-year and 2% quarter-over-quarter. The bank's net interest margins (NIMs) were estimated to have decreased to 3.3% in the first quarter of 2026, compared to 3.9% during the same period last year and 3.4% in the previous quarter.
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