Samba Bank posts 53% drop in quarterly profit

April 18, 2025 (MLN): Samba Bank Limited (PSX: SBL) reported a profit after tax of Rs166.85 million for the quarter ended March 31, 2025, reflecting a sharp 53.48% decline compared to Rs358.68m in the same period last year.

Earnings per share (EPS) dropped to Rs0.17 from Rs0.36, down 52.78% year-on-year.

The fall in profitability was primarily driven by a 16.10% drop in net mark-up/interest income, which stood at Rs1.56 billion, down from Rs1.86bn.

This decline occurred despite a 30.60% decrease in mark-up/interest expenses to Rs3.97bn, as mark-up earned also declined by 4.33% to Rs5.53bn.

While dividend income increased by 40.24% and foreign exchange income rose by 6.83%, other income plummeted by 73.27%, and fee and commission income dropped 5.72%.

Operating expenses remained largely flat, edging up 1.09% to Rs1.34bn.

Provisions for credit losses, however, surged by 79.08%, further impacting earnings.

As a result, profit before tax fell 49.39% to Rs355.22m, while tax expenses dropped 45.11% to Rs188.37m, offering limited offset to the overall decline in bottom-line profitability.

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