SNBL CY25 profit falls 23%, Rs1.50 dividend

January 29, 2026 (MLN): Soneri Bank Limited (PSX: SNBL) posted a profit after taxation of Rs4.56 billion for the year ended December 31, 2025, down 22.8% from Rs5.90bn in the same period last year.

Earnings per share (EPS) declined to Rs4.13 compared to Rs5.35 in FY24, showing pressure on profitability amid higher operating costs and credit provisions.

The bank’s net mark-up / interest income rose 8.4% YoY to Rs27.04bn, despite a 26.1% decline in mark-up earned to Rs84.38bn.

The improvement was driven by a sharper 35.7% reduction in mark-up expense to Rs57.33bn, benefiting spreads in a declining rate environment.

Non mark-up / interest income increased 20.4% YoY to Rs8.13bn, supported by a sharp rise in gains on securities to Rs1.25bn, up from Rs118.5m last year.

Fee and commission income also improved 12.9% YoY to Rs4.90bn, while dividend income rose 25.8% to Rs145.1m. However, foreign exchange income declined 17.5% YoY to Rs1.71bn.

As a result, total income grew 11.0% YoY to Rs35.18bn.

On the expense side, operating expenses surged 23.0% YoY to Rs23.62bn, showing inflationary pressures and higher administrative costs.

Other charges increased sharply to Rs369.8m, compared to Rs62.6m last year, further weighing on profitability, while Workers Welfare Fund expense declined 10.1% YoY to Rs232.1m.

Consequently, profit before credit loss allowance fell 10.1% YoY to Rs10.95bn.

Credit loss allowance and write-offs rose 42.0% YoY to Rs654.4m, dragging profit before taxation down 8.2% to Rs11.61bn.

After booking a higher tax charge of Rs7.05bn, up 4.6% YoY, Soneri Bank closed the year with a net profit of Rs4.56bn.

The bank’s performance during FY25 was impacted by higher operating expenses and elevated credit costs, which outweighed growth in net interest income and strong gains on securities.

The board revealed a final cash dividend of Rs1.50 per share (15%) for the year ended December 31, 2025.

Copyright Mettis Link News