Soneri Bank has released the condensed interim financial statements for nine months ending on 30^th September, 2022. The decision was made in the 194^th meeting of the Board of Directors of the Soneri Bank held on 27^th October, 2022, in Karachi.

The bank saw a decrease in profits in the nine months under consideration of this year as compared to the nine months of last year. The bank’s profits of before tax (PBT) were recorded at PKR 3,348 million and profits after tax (PAT) 1,295 million in the nine months ending on 30^th September, 2022. For the nine months of last year, the two figures were PKR 4,198 million and PKR 2,357 million, respectively. The earnings per share of the bank for the nine months of 2022 ending on September 30^th, were recorded at PKR 1.1747, whereas in the previous year they were PKR 2.1388.

The net interest income of the bank decreased by 8.04% in the nine months under consideration. It was recorded at PKR 7,759 million this year, as compared to PKR 8,437 million recorded last year. The factor behind this reduction was the timing difference on repricing of the overall balance sheet. The bank’s non-interest income, however, increased impressively to PKR 4,066.717 million as against PKR 3,093.038 million for the corresponding previous nine months of 2021. Growth in expenses was restricted to an increase of 19.73% and non-markup expenses were recorded at PKR 9,003 million in the nine months of this year ending on September 30^th.

The Bank’s net advances portfolio increased to PKR 194,752 million as of 30^th September 2022. This shows an increase of 17.68% over the year end of 2021 level. The bank’s non-performing loans to total Advances ratio improved to 4.93% (December, 2021: 5.95%). The specific coverage was at 71.86% (December, 2021: 76.51%).

The bank’s deposits registered an increase of 7.69% when compared to 31^st December, 2021, ending at PKR 434,017 million on 30^th September, 2022. Its CA mix improved to 28.39% in September, 2022, as against 27.17% in December, 2021, with period end Current Accounts at PKR 123,221 million as against PKR 109,494 million at the year’s end of 2021.

The bank’s period end borrowings indicated a decrease of PKR 46.143 billion when compared to December, 2021, while its overall costs increased to 10.21% for the nine months ending on 30^th September, 2022, as against 6.31% for the corresponding previous period.

As a result of changes introduced by the Finance Act 2022, the bank’s effective tax rate for the period under consideration increased significantly to 61.32% (September, 2021: 43.83%), because the Bank had to absorb the resulting additional charge, including that for previous periods, during the current period.

The statement from the bank read that despite economic challenges being faced by the country, the bank has continued to service its customers to the highest standards of quality. The bank’s performance has been affected significantly by the changes in policy rate set by the State Bank and it will continue to be affected in the future. Soneri Bank will continue to follow a risk-based approach towards lending and growth.

With repricing on the asset book now effective, the management expects the pressure on spreads to gradually ease out in the coming months. The bank intends to continue with measures to control costs amidst high inflationary pressures so as to achieve its desired KPIs over the remaining course of the year.

Credit: Independent News Pakistan-WealthPk