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 of Fauji Foundation (FF) and Fauji Fertilizer Company Limited (FFCL) collectively owns 71.91 (2024: 71.91) percent shares of the Bank. The ultimate parent of the Bank is Fauji Foundation. 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. The Fauji Group comprises of several industrial/commercial projects in various sectors including energy, gas supply, fertilizer, cement, food, oil & gas exploration, financial services etc. includes wholly-owned as well as partly-owned ventures. 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 years the group has stretched its business profile by entering into new industries, providing it diversity; in revenue streams, a very strong brand image, and increased hands-on knowledge of the various sectors of the economy.

The overall control of the Bank vests in the Eleven-member Board of Directors (BoD) including the President and CEO. Five of the Board members are Fauji Foundation nominees; four are independent members, while one represents NIT (National Investment Trust). 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.

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, Mr. 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. Sheharyar Iftikhar Khan holds an MBA, and currently serves as the Group Head of Corporate and Investment Banking, bringing over 25 years of experience. 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. 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. 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.

Pakistan’s banking sector remained resilient in CY25, with total assets growing by ~17.8%, investments by ~31.1%, and the average CAR improving to 20.8%, while advances contracted by ~6% amid a cautious lending environment and lower interest rates (Source: SBP Compendium). Against this backdrop, Askari Bank Limited (AKBL) demonstrated strong balance sheet growth, supported by robust deposit mobilization and a strengthened liquidity profile. The Bank’s total deposits increased by ~19.6% to PKR 1,631.3bln (CY24: PKR 1,363.7bln), of which customer deposits amounted to PKR 1,599.6bln, representing ~98.1% of the total deposit base. Despite strong growth, AKBL’s customer deposit market share remained broadly stable at 4.52% (CY24: 4.53%). The Bank maintained a conservative lending stance, resulting in a lower ADR of 35.9% (CY24: 51.0%), while capitalization remained strong with a CAR of 21.6% (CY24: 21.4%), providing a comfortable buffer above regulatory requirements. 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). Consequently, asset yield compressed to 12.4% (CY24: 19.8%), while spread narrowed slightly to 3.6% (CY24: 3.7%). However, the Bank partially offset this pressure through growth in non-funded revenues, with non-markup income increasing to PKR 17.8bln (CY24: PKR 15.4bln), driven by higher fee and commission income and stronger gains on securities. Operating performance remained affected by inflationary pressures and continued investments in human resources and infrastructure, leading to an increase in non-markup expenses to PKR 50.1bln (CY24: PKR 36.0bln). However, net profit rose to PKR 22.8bln (CY24: PKR 21.0bln), with growth partially offset by a higher effective tax charge. Going forward, AKBL intends to focus on strengthening core revenues, optimizing asset allocation, enhancing digital capabilities, and maintaining a prudent risk profile, which should support sustainable growth and reinforce its overall credit profile.

At end-CY25, AKBL’s gross advances registered a decline of 14.7% YoY to stand at PKR 625.2bln (CY24: PKR 733.1bln), reflecting a cautious lending stance amid prevailing economic conditions. As a result, the ADR based on net advances declined to 35.96% (CY24: 51.02%), indicating reduced credit deployment relative to deposits. The infection ratio increased to 5.3% (CY24 4.7%), showing a slight deterioration in asset quality. Meanwhile, the Bank’s NPLs increased marginally to PKR 33.1bln in CY25 (CY24: PKR 34.4bln), reflecting contained but slightly rising stress in the portfolio. The Bank’s investment portfolio recorded a strong expansion during 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. The Bank remained well-capitalized during CY25, maintaining strong buffers comfortably above regulatory requirements. As of 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.

The Bank issued an unsecured, subordinated, perpetual, rated and OTC-listed Term Finance Certificate-VI (“TFC” or the “Issue” or “Instruments”). The issue amounts to PKR 6.0bln. The profit rate is 6 Months KIBOR + 1.5%. The profit is being paid semiannually in arrears on the outstanding principal amount. The amount raised through this Issue contributed toward Bank’s Additional Tier I Capital for maintaining the Capital Adequacy Ratio. The funds so raised are utilized in Bank’s normal business operations as permitted by its Memorandum & Articles of Association. The Bank has paid the profit payment of Jan 2026, and the next payment is due in July 2026.

The instrument is subordinated as to the payment of principal and profit to all other claims except common shares. In addition to the Lock In clause, the Instrument is subject to 1) loss absorption upon the occurrence of a Pre Specified Trigger (“PST”) i.e. issuer’s CET1 ratio falls to/below 6.625% of Risk-Weighted Assets; and 2) loss absorption and/or any other requirements of SBP upon the occurrence of a Point of Non-Viability (“PONV”). Upon reaching the pre-defined trigger point or point of non-viability (PONV), the TFC may be converted into equity/written off (Partially or in full) as per the discretion/instructions of SBP subject to a specified cap.

The instrument is unsecured.