Karachi: Askari Bank Ltd. (AKBL) has released its financial results for the third quarter of the calendar year 2026, reporting a net profit after tax (NPAT) of PKR 7.1 billion, which marks a 4% decrease year-over-year but a 6% increase quarter-over-quarter. The bank's performance slightly exceeded expectations due to higher-than-anticipated net interest income and foreign exchange income. A cash payout of PKR 2.0 per share was announced, aligning with projections and bringing the total payout for the first nine months of 2026 to PKR 6.0 per share.

According to AKD Securities Limited, the bank's net interest income (NII) in the third quarter stood at PKR 25.6 billion, reflecting a 12% increase year-over-year and a 17% increase quarter-over-quarter. This growth is attributed to an increase in average earning assets and higher yields. The investment portfolio of the bank saw a 5% year-over-year increase, while it decreased by 8% quarter-over-quarter to PKR 2.1 trillion as of September 2026. Advances grew by 22% year-over-year but decreased by 5% quarter-over-quarter to PKR 667 billion as of June 2026, funded by a 20% growth in deposits annually. However, sequential declines were observed due to a 14% and 1% quarter-over-quarter decrease in borrowings and deposits, respectively.

Mark-up earned by the bank rose 11% year-over-year and 2% quarter-over-quarter to PKR 85.2 billion. Meanwhile, mark-up expensed increased by 11% year-over-year but declined 3% quarter-over-quarter to PKR 59.7 billion. Consequently, the bank's estimated net interest margins (NIMs) decreased to 3.6%, compared to 3.7% in the same period last year and 3.0% in the second quarter of 2026.