Mid-Tier Banks CY2025 Results: Askari Hits Record, Bank Alfalah and Al Habib Profits Dip

The largest banks posted record 2025 profits, but the next tier down told a more varied story. Askari Bank set a record, Faysal Bank held roughly steady, and both Bank Alfalah and Bank Al Habib saw earnings decline from a strong 2024. The common thread was that all four kept returning healthy cash to shareholders, even where profit slipped.

What the mid-tier bank results showed

Askari Bank was the standout, reporting profit after tax of Rs23.02 billion for 2025, up 8.32 percent from Rs21.26 billion and its highest ever, announced on 9 February 2026. It paid Rs5 per share in total dividends. Faysal Bank reported net profit of about Rs21.7 billion on a pre-tax profit of Rs47 billion, with total dividends of Rs6.5 per share, a solid result though softer than its very strong prior year.

Bank Alfalah showed the clearest dip, with earnings per share falling to Rs17.97 from Rs24.30, though it paired the result with a 2-for-1 stock split and a high cumulative dividend of Rs10.50 per share, announced on 16 February 2026. Bank Al Habib also saw earnings fall, with EPS of Rs29.19 against Rs37.70, and declared a Rs3.50 dividend.

Why the mix matters for bank stocks

Banks rode a high interest rate environment through 2025, which lifted net interest income across the board. But individual results also depend on one off items, provisioning, and how 2024 had gone. A bank that booked unusually high gains in 2024 can show a profit decline in 2025 even with a healthy core business, which appears to be the case for Bank Alfalah and Bank Al Habib. That is why the headline direction of a result matters less than the trend in core income and the strength of the payout.

Which stocks, and why

Askari Bank is the clear positive, with a record profit and steady growth. Faysal Bank is neutral, a solid absolute profit and good dividend but softer than its standout prior year. Bank Alfalah is neutral as well: profit fell, but the stock split and large Rs10.50 payout are shareholder friendly signals that offset some of the earnings dip. Bank Al Habib is the negative of the group, with earnings down around a fifth, though it remains a large and well run bank.

What to watch

The key driver remains the policy rate, which supports margins after the April 2026 hike, plus each bank's deposit growth, cost of funds and provisioning. Watch whether the banks that dipped in 2025 stabilise their core income in 2026, and how Bank Alfalah trades after its split. Sustained dividends across the group would signal the sector's earnings power is holding up.