Askari Bank Limited ("AKBL" or the "Bank"), incorporated as a public limited company in 1991, is listed on the Pakistan Stock Exchange.

The Bank commenced its operations as a Scheduled Commercial Bank in 1992. The registered office of the Bank is situated at AWT Plaza, the Mall, Rawalpindi, and the head office is located in Islamabad.

The Bank is principally engaged in the business of banking as defined in the Banking Companies Ordinance, 1962, and operates with 757 branches (2024: 720 branches); 756 in Pakistan and Azad Jammu and Kashmir, including 365 (2024: 198) Islamic Banking branches and 66 (2024: 68) sub–branches and a Wholesale Bank Branch (WBB) in the Kingdom of Bahrain. The Bank also has a representative office in Beijing, China. The Bank provides a diverse range of products across conventional and Islamic banking.

The Fauji Consortium, comprising Fauji Foundation (FF) and Fauji Fertilizer Company Limited (FFCL), collectively owns 71.91% (2024: 71.91%) of the Bank’s shares. Fauji Foundation (FF) is the ultimate parent and, more importantly, exercises direct control over the Bank pursuant to the related agreement executed between FF and Fauji Fertilizer Company. The remaining stake of 28.09% is widely spread among financial institutions and the general public.

Over the years, The Fauji Group has emerged as one of the leading conglomerates of the country with established business interests in numerous sectors and industries. FF is one of the country's leading and most diversified groups, commanding a very strong market capitalization across its spectrum of companies. This association provides the Bank with key strategic advantages, including enhanced market reach, stronger customer confidence, and access to a stable and diversified deposit base.

The Fauji Group comprises several industrial/commercial projects in various sectors, including energy, gas supply, fertilizer, cement, food, oil & gas exploration, financial services, aviation and other strategic sector, encompassing wholly-owned as well as partly-owned ventures. Beginning FY27, FF has announced multiple acquisitions, most notably Askari General Insurance and Askari Life Insurance, while a few other ventures are also in the pipeline. These initiatives are expected to further augment AKBL's presence across the country's financial spectrum, reinforcing its strategic positioning and unlocking an array of cross-sell opportunities.

The Fauji Group is one of the leading and most diversified groups in Pakistan. The group has a very strong equity and asset base. Over the past two years, the market capitalization of FF Group companies has increased by more than threefold to approximately PKR 2.1trln, making it the largest business group in Pakistan by market capitalization and significantly ahead of any other domestic business group. Over the years, the group has stretched its business profile by entering into new industries, providing it with diversity in revenue streams, a very strong brand image, and increased hands-on knowledge of the various sectors of the economy. The FF Group's growing contribution to the national exchequer underscores its solid financial performance and important role in the economy.

The overall control of Askari Bank Limited vests in an eleven-member Board of Directors (BoD), including the President and CEO. The Board comprises four nominees of Fauji Foundation, four independent directors, and one representative of National Investment Trust Limited, ensuring a balanced governance structure with both strategic sponsor representation and independent oversight. Lt Gen Anwar Ali Hyder, HI(M) (Retd), is the Chairman of the Board.

The Board members bring diverse experience and strong academic backgrounds. Their expertise spans over financial institutions, public sector entities, oil and gas, power, fertilizers, information technology, and other sectors. The key competencies of the members are closely aligned with the Bank’s business objectives.

The Bank has four Board Committees in place; i) Risk Management Committee, ii) Audit Committee, iii) Human Resource and Remuneration Committee, and iv) Information Technology Committee, which help the Board in the effective oversight of the Bank’s overall operations on relevant matters.

A.F. Ferguson & Co. expressed an unqualified opinion on the Bank’s financial statements for CY2025. Furthermore, the Bank has an independent Internal Audit Function that directly reports to the Board Audit Committee (BAC) and provides independent assurance on the quality, effectiveness, and adequacy of the Bank’s governance, risk management, and control environment.

The Bank operates through a well-defined organizational structure headed by the President and CEO.

Mr. Zia Ijaz, the President and CEO of the Bank, joined in 2025. He is a seasoned banker with over three decades of extensive banking experience, having held senior leadership roles at leading commercial banks in Pakistan and abroad.  Mr. Zia Ijaz is a Fellow Chartered Accountant and a member of ICAP Pakistan. Following the resignation of Mr. Saleem Anwar, FCA, who previously served as Chief Financial Officer of Askari Bank Limited, Syed Imran Ali Shah has recently joined as the Senior Group Executive & Chief Financial Officer (CFO) of the Bank. He brings nearly two decades of diversified experience across financial management, treasury, capital and liquidity management, performance management, financial governance, and strategic planning. Prior to joining the Bank, he served as Chief Financial Officer of Meezan Bank Limited and held senior roles at leading international institutions, including Goldman Sachs, Morgan Stanley, Deutsche Bank, and KPMG UK. Mr. Shah holds an Executive MBA from London Business School and is a Fellow Chartered Accountant (FCA) as well as a Chartered Financial Analyst (CFA). Mr. Aslam Sadruddin, having over 40 years of extensive banking experience, is the Group Executive of Operations, Transformation, and IT. Mr. Arif Raza, an M.Com, is the Global Treasurer, with 30 years of experience. Mr. Khurram Sadiq, a CFA charter holder and MBA, currently serves as the Chief Risk Officer with 22 years of experience. Mr. Shaikh Raashed Rauf, who holds an MBA, has been appointed as Group Head Retail Banking. He brings over 28 years of diversified banking experience across Retail, SME, Commercial, Corporate, and Islamic Banking. Mr. Uzair Naveed Rabbani, has been appointed as Group Head Corporate & investment Banking, having over 27 years of experience in Corporate & investment Banking, development finance, and public-private sector financing at leading banks i.e. HBL and UBL. All of them report to the President and CEO of the Bank. Going forward, the sustainability and cohesiveness of the team will remain important to continue the growth trend.

The Bank's operations are currently divided into 13 functions, 12 of which report directly to the President and CEO. The Chief Internal Auditor reports to the Board Audit Committee. The Bank has seven management committees in place, chaired by the President and CEO, to oversee its day-to-day operational matters. The committees ensure, that the Bank is aligned with its current strategy.

The Bank has made a considerable investment in the IT infrastructure. The Bank’s core banking software is Flexcube developed by Oracle financial services, and has an Oracle Based Enterprise Risk Management solution and Loan Origination System. These systems not only enhance operational efficiency in the risk management processes, but also promote integrated risk assessment. Furthermore, the Bank has recorded a significant improvement in its cybersecurity posture to mitigate rising challenges and comply with best practices.

The Bank has a robust Risk Management Framework driven by the Board Risk Management Committee and supported by multi-tier management structures, including credit risk & operational risk committees and ALCO (for interest rate and market risk) to ensure that the risk tolerance is well defined, and remains aligned with risk appetite, considering factors such as size, financials and market standing. Risk Management Group is headed by the Chief Risk Officer (CRO), who oversees the management of Credit, market/liquidity, Information Security, and Operational Risk.

During CY25, Pakistan’s banking sector’s total assets grew by approximately 17.8% YoY, while investments surged by ~31.1% to PKR ~39.1trln (CY24: PKR ~29.8trln). Net advances of the sector declined by ~6% to PKR ~14.9trln (CY24: PKR ~15.8trln). Non-Performing Loans (NPLs) decreased by 9.7% YoY to PKR ~964bln (CY24: PKR ~1,068bln). The Capital Adequacy Ratio (CAR) averaged 20.8% (CY24: 20.6%), slightly below historical averages due to higher risk-weighted assets and a shift toward low-yield government securities, yet capitalization remains adequate to absorb potential shocks. While the Advances to Deposit Ratio (ADR) was reported at 37.5% (CY24: 49.7%), which appears higher relative to declining advances, because deposit growth outpaced lending activity. This reflects a cautious lending stance by banks in a challenging macroeconomic environment, where risk-averse behavior and liquidity accumulation resulted in slower credit deployment, pushing the ADR downwards. In a lower policy rate environment, coupled with high operating costs and reduced lending, the sector faced margin pressure, leading to moderated profitability by end-CY25, despite robust capitalization and improving asset quality. (Source: SBP Compendium). Amid the evolving industry dynamics and cautious lending environment, Askari Bank Limited demonstrated a strong and progressively strengthening balance sheet during CY25, supported by robust deposit mobilisation and expanding asset base. The Bank recorded healthy double-digit growth in its deposit base, which significantly strengthened its funding profile and liquidity position. In parallel, the balance sheet expanded meaningfully, reflecting sustained growth momentum and prudent asset deployment, thereby reinforcing overall financial resilience. Despite the broader industry’s cautious lending environment, Askari Bank’s Advance-to-Deposit Ratio (ADR) moderated sharply to 35.9% (CY24: 51.02%), indicating a deliberate shift towards liquidity preservation and conservative credit expansion amid macroeconomic uncertainty. Meanwhile, the Capital Adequacy Ratio (CAR) improved slightly to 21.6% (CY24: 21.4%), reflecting continued capital strength and a comfortable buffer over regulatory requirements. Overall, the Bank’s strengthening balance sheet profile, improved capitalization, and enhanced liquidity position present a constructive credit trajectory with positive implications from an upgrade perspective.

Askari Bank Limited's total deposit base increased to PKR 1,631.3bln in CY25 (CY24: PKR 1,363.7bln), reflecting a growth of ~19.6%. Customer deposits, constituting approximately 98.1% of the total deposit base, rose to PKR 1,599.6bln (CY24: PKR 1,343.7bln), registering a growth of ~19.0% and demonstrating sustained momentum in core funding mobilization. Despite this strong growth, the Bank's customer deposit market share remained broadly stable at 4.52% in CY25 (CY24: 4.53%), as industry-wide deposit growth marginally outpaced the Bank's expansion.

During CY25, amid the lower yield environment and the impact of repricing, markup income declined by ~25.2% and was reported at PKR 300.8bln (CY24: PKR 401.0bln). Segment-wise, markup from loans and advances declined significantly to ~PKR 68.5bln (CY24: PKR 118.5bln), showing a contraction of ~42.2%, primarily due to reduced credit deployment and repricing of the lending book. Similarly, investment income decreased to ~PKR 227.9bln (CY24: PKR 274.6bln), down ~17.0%, reflecting yield compression in the sovereign portfolio amid a declining interest rate cycle. As a result, the Bank’s asset yield compressed sharply to 12.4% (CY24: 19.8%), while the spread narrowed to 3.6% (CY24: 3.7%).

Askari Bank Limited demonstrated a slightly improved profitability profile in CY25, where strong growth in non-markup income was largely offset by higher operating costs. Non-markup income increased to PKR 17.8bln (CY24: PKR 15.4bln), supported by higher fee and commission income and stronger trading activity. Fee and commission income rose to PKR 7.6bln (CY24: PKR 6.9bln), reflecting steady core banking, transactional flows, and the continued expansion of the Bank's trade finance franchise. During CY25, total trade volumes increased by 5% YoY as the Bank continued to invest in technology, processes, product capabilities, and compliance infrastructure to strengthen its transaction banking platform. The momentum further accelerated during 6MCY26, with aggregate trade volumes increasing by 120% YoY, driven by significant growth across import, export, and letter of guarantee (LG) businesses. This expanding trade business is expected to provide sustainable support to recurring fee-based income while deepening corporate customer relationships. Gains on securities also increased to PKR 4.3bln (CY24: PKR 2.8bln), driven by realised gains in equity and government securities portfolios. However, non-markup expenses rose sharply to PKR 50.1bln (CY24: PKR 36.0bln), mainly due to higher operating expenses and increased compensation costs amid inflationary pressures. Operating expenses increased significantly to PKR 49.4bln (CY24: PKR 35.4bln), mainly due to high compensation costs reaching PKR 22.8bln (CY24: PKR 17.0bln), reflecting continued investment in staff and infrastructure. Despite cost pressures, profit before tax improved to PKR 53.3bln (CY24: PKR 44.5bln), supported by strong non-markup income generation, balance sheet expansion, and improved business volumes. However, net profit rose to PKR 22.8bln (CY24: PKR 21.0bln), with growth partially offset by a higher effective tax charge.

AKBL will continue to focus on the growth of core revenues, current accounts, and return on assets by optimizing and reallocating assets and resources to their full potential and will pursue acquiring high-quality assets while enhancing relationship yields and maintaining an optimal risk profile using technology at its best. People development will be a key pillar along with technology enablement, to provide deeper insights while planned upgrades of enabling systems, payment, cash management system, and card systems are expected to create considerable enhancements to the Bank’s overall customer value proposition.

At end-CY 25, AKBL’s gross advances declined by 14.7% YoY to PKR 625.2bln (CY24: PKR 733.1bln), reflecting a cautious lending stance amid prevailing macroeconomic conditions. Consequently, the ADR (based on net advances) decreased to 35.96% (CY24: 51.02%), indicating lower credit deployment relative to the deposit base. The infection ratio increased to 5.3% (CY24: 4.7%), reflecting a slight weakening in asset quality. Meanwhile, NPLs stood at PKR 33.1bln in CY25 (CY24: PKR 34.4bln), indicating contained stress and relatively stable asset quality within the portfolio.

The Bank’s investment portfolio recorded a strong expansion at end-CY25, increasing by 34.4% to PKR 2,028.8bln (CY24: PKR 1,509.7bln), reflecting significant deployment of surplus liquidity in securities. This growth was primarily driven by a substantial increase in debt instruments measured at FVOCI, which rose to PKR 1,953.9bln (CY24: PKR 1,438.9bln), indicating a continued strategic preference for government-backed and lower-risk instruments amid a cautious operating environment. Equity investments also registered a notable increase, with FVOCI equity more than doubling to PKR 17.6bln (CY24: PKR 9.3bln), reflecting selective exposure to equities to enhance portfolio yields. However, debt instruments classified under amortised cost and FVTPL witnessed a marginal decline, suggesting a gradual shift in portfolio composition towards FVOCI holdings.

The Bank continues to maintain a strong liquidity position, supported by a sufficient liquidity buffer to absorb any potential adverse movements in the cash flow maturity profile. As a result, the overall liquidity ratio improved to 73.0% (CY24: 60.6%), reflecting a strengthened liquidity profile during the period. Within the deposit mix, the current account ratio increased to 30.8% (CY24: 28.4%), indicating a healthy inflow of low-cost deposits. In contrast, the saving account ratio declined to 56.3% (CY24: 61.3%), reflecting a relative shift in deposit composition. Consequently, the CASA ratio slightly eased to 87.1% (CY24: 89.7%), though it remains at a strong level, supporting the Bank’s low-cost funding base and overall liquidity strength. Deposits from financial institutions also increased to PKR 31.6bln (CY24: PKR 19.9bln), showing a sharp rise of ~58.3%, indicating improved institutional inflows and broader funding diversification.

The Bank remained well-capitalized during CY25, maintaining strong buffers comfortably above regulatory requirements. At end-CY25, the Capital Adequacy Ratio (CAR) improved slightly to 21.6% (CY24: 21.4%), reflecting sustained capital strength and stable risk-weighted asset growth. However, Tier I CAR moderated to 17.3% (CY24: 17.9%), though it continued to remain well above the minimum regulatory threshold, ensuring adequate core capital coverage. The Bank’s equity base also strengthened significantly, increasing to PKR 151.7bln at end-CY25 (CY24: PKR 121.6bln), supported by internal capital generation. Overall, the Bank remains committed to maintaining capital ratios well above regulatory benchmarks, thereby reinforcing its strong risk absorption capacity and financial resilience.