Askari Bank: Liquidity Up, Lending Down (Sep’24 → Sep’25)
Askari Bank’s latest corporate briefing shows a shift toward safety and liquidity.
Profitability stayed firm with ROA at 0.9% and ROE at 18.4%, reflecting steady earnings despite slower loan growth.
Deposits rose 11% YoY, driven by a 25% jump in current accounts, improving funding mix and margins.
However, advances fell 20%, pulling the advances-to-deposit ratio (ADR) down to 39% from 54%. The decline signals weak credit demand and a conservative lending stance, as the bank likely favored government securities amid high rates.
Asset quality improved slightly (NPLs 5.9%, coverage 113%), while cost-to-income eased to 43.6%.
Capital adequacy strengthened to 22.7%, keeping AKBL well above regulatory limits.
Overall, AKBL remains profitable, well-capitalized, and liquid, though lending contraction limits growth momentum for now.
https://dps.psx.com.pk/download/document/264912.pdf
