Soneri Bank announces Year End Results for 2019 - Profit increasing by 11.78 percent and 6.86 percent

Soneri Bank announces Year End Results for 2019 - Profit increasing by 11.78 percent and 6.86 percent

Karachi (PR): Soneri Bank announces Year End Results for 2019 profit before tax Profit before tax (PBT) of Rs. 3,247 million and profit after tax (PAT) of Rs. 1,906 million in the year 2019, as compared to Rs. 2,905 million and Rs. 1,784 million respectively in 2018, increasing by 11.78 percent and 6.86 percent respectively.

Karachi, February 14, 2020: The Board of Directors of Soneri Bank Limited, in their 175th meeting held in Lahore on 13th February 2020, approved the Bank’s financial statements for the year ended 31 December 2019.

The Bank posted profit before tax (PBT) of Rs. 3,247 million and profit after tax (PAT) of Rs. 1,906 million in the year 2019, as compared to Rs. 2,905 million and Rs. 1,784 million respectively in 2018, increasing by 11.78 percent and 6.86 percent respectively. These results have consequently improved the Bank’s EPS to Rs. 1.7289 per share in 2019 from Rs. 1.6179 per share in 2018. The Board of Directors has also announced cash dividend for the year ended 31 December 2019 @ 10 percent i.e. Rs. 1.00 per share.

Net Interest Income (NII) for the year was reported at Rs. 7,926 million, improving by 14 percent year on year. The growth in net interest income was primarily due to improved volumes as well as spreads.

 Non-Interest Income ended lower than the prior period, mainly due to the impact of losses incurred on the Capital markets portfolio, while fee and commission earnings, dividend income and foreign exchange income all improved substantially by 9.89 percent, 28.30 percent and 15.46 percent respectively.

Growth in expenses was kept restricted at 10.16 percent, as compared to the prior year, with Nonmarkup expenses reported at Rs. 8,129 million for the year ended 31 December 2019.  The Bank’s net advances portfolio grew by 9.88 percent to Rs. 204,901 million over the year. Nonperforming loans decreased by 4 percent from Rs. 11,357 million on 31 December 2018 to Rs. 10,903 million on 31 December 2019. As a result, the Bank’s infection ratio has improved from 5.83 percent on 31 December 2018 to 5.13 percent on 31 December 2019, moreover, the specific provision coverage ended at 69.46 percent on 31 December 2019.

Net investments witnessed a significant volumetric increase of Rs. 30,411 million or 20.74 percent from the year-end balance of Rs. 146,645 million, ended at Rs. 177,056 million as at 31 December 2019.

Deposits also registered a healthy growth of Rs. 39,704 million or 15.13 percent over the year, and were reported at Rs. 302,083 million as at 31 December 2019. The Bank remains adequately capitalized, with CAR of 15.79 percent at year end.