Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the credit rating of Askari Bank Limited’s Tier I debt instrument at AA-, with a stable outlook. This decision underscores the bank’s robust ownership structure and strategic affiliations, particularly its strong ties with the Fauji Group conglomerate. Askari Bank’s ongoing efforts to expand its international trade and remittance activities, particularly in Europe, Southeast Asia, and the Middle East, have been pivotal in maintaining its rating.
According to The Pakistan Credit Rating Agency Limited, the bank’s net markup income saw a 7% increase in the first nine months of the current year, reaching PKR 43.2 billion, up from PKR 40.5 billion during the same period last year. This growth was primarily driven by a significant expansion in the bank’s investment portfolio, despite a 24% decline in advances due to the retirement of short-term seasonal financing. The bank also reported a credit loss allowance of PKR 1.2 billion. Profit after tax remained steady at PKR 14.0 billion, influenced by increased funding costs and operating expenses linked to branch expansion and technological investments.
The report highlights a 9% growth in Askari Bank’s deposit base, totaling PKR 1.4 trillion, with a substantial 14% increase in current and savings accounts, which now constitute 88% of total deposits. The bank’s capital adequacy ratio improved to 21.19%, indicating strong capitalization. The management’s commitment to enhancing business sustainability through Islamic Banking and Shariah-compliant products is noteworthy. Maintaining a competitive edge will require prudent management of funding costs and asset quality.
The post Askari Bank’s Rating Maintained by PACRA Amidst Strategic Expansion appeared first on Pakistan Business News.
The post Askari Bank’s Rating Maintained by PACRA Amidst Strategic Expansion appeared first on AsiaNet-Pakistan.