Karachi: Askari Bank Limited (AKBL) has maintained its ratings, benefiting from a robust ownership structure and strategic affiliation with the Fauji Group, according to The Pakistan Credit Rating Agency Limited. This association has bolstered the Bank’s market presence, customer confidence, and funding sources, while supporting both interest-based and non-interest-based income streams.

The Bank has made strides in digital innovation, enhancing its mobile application and establishing an innovation lab to advance its digital-first strategy. This year, Askari Bank expanded its branch network by 60, predominantly Islamic branches, extending its reach to 720 locations, including in Bahrain and Beijing. The Bank is also focusing on Chinese business, leveraging the benefits of Chinese investment in Pakistan.

Askari Bank's Islamic Banking division, Askari Ikhlas, is expanding its Shariah-compliant offerings, guided by a Shariah Board and professional bankers. The Bank has improved service excellence through process enhancements and a 24/7 contact center, handling 85,000 complaints with efficiency.

Financially, the Bank's net markup income rose by 6.5% to PKR 63.3 billion. Fee and commission income was the largest segment of its non-markup income, followed by foreign exchange income. As of December 2024, the Bank's deposits grew by 5.5% to PKR 1,363 billion, with a focus on savings deposits, although the share of customer deposits remained stable.

The Bank saw a substantial expansion in its loan portfolio, with gross advances reaching approximately PKR 733 billion. Its investment book grew significantly, primarily invested in government securities. Asset quality improved, with a slight increase in the infection ratio to 4.7%. The Bank's Capital Adequacy Ratio improved to 21.4%.

The ratings reflect the Bank’s ability to maintain its competitive position. Looking ahead, prudent management of funding costs and asset quality will be critical to sustaining growth.