Samba Bank's 1QCY24 profit jumps 28% YoY to Rs358.7m

April 25, 2024(MLN): Samba Bank Limited (PSX: SBL) earned Rs358.55m [EPS: Rs0.36] during the quarter ended March 31, 2024 (1QCY24) compared to a profit of Rs276.21m [EPS: Rs0.28] recorded in 1QCY23, reflecting a substantial growth of 29.81% YoY.

It is crucial to note that SBL swung to a profit in 2023, as its net profit reached Rs1.24bn compared to a loss of Rs427.94m recorded in 2022.

Going by the income statement made available by the company on the PSX, the bank witnessed an increase of 19.17% YoY in its markup interest income to clock in at Rs1.86bn in 1QCY24 against Rs1.56bn incurred in the same period last year (SPLY).

Similarly, the bank’s total non-markup interest income surged by 3.2x YoY to Rs320.31m as compared to Rs99.95m reported in 1QCY23.

This growth in non-markup income is attributed to a substantial reduction in the bank’s loss on securities, which reduced to just Rs469,000 compared to Rs418.93m in 1QCY23.

Accordingly, the bank’s total income was recorded at Rs2.18bn as against Rs1.66bn in SPLY, reflecting a growth of 31.21% YoY.

The three months’ total non-mark-up/interest expenses of SBL stood at Rs1.34bn, up by 21.22% YoY.

SBL's net credit loss allowance and write-offs witnessed a rise of 2.56x YoY to be recorded at Rs133.09m during this review quarter.

On the tax front, the bank paid Rs343.17m, against a tax expense of Rs222.45m reported in 1QCY23.

The substantial growth in both markup and non-markup income associated with improved and expanded business activity in the economy overcame the rising costs and boosted its profit this quarter.

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