Samba Bank’s Q2 CY24 profit drops 29% YoY to Rs304m

August 27, 2024 (MLN): Samba Bank Limited (PSX: SBL) earned Rs304.25m [EPS: Rs0.3] during the quarter ended June 30, 2024 (Q2 CY24) compared to a profit of Rs426.31m [EPS: Rs0.42] recorded in Q1 2023, reflecting a significant drop of 28.63% 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 2.36% in its markup interest income to clock in at Rs2.06bn in Q2 CY24 against Rs2bn incurred in the same period last year (SPLY).

Similarly, the bank’s total non-markup interest income surged by 67.04% to Rs569.52m as compared to Rs340.93m reported in Q1 CY23.

Accordingly, the bank’s total income was recorded at Rs2.63bn as against Rs2.35bn in SPLY, reflecting a growth of 11.75% YoY.

The three months’ total non-mark-up/interest expenses of SBL stood at Rs1.24bn, up by 6.99% YoY.

SBL's net credit loss allowance and write-offs witnessed a rise of 45.68x YoY to be recorded at Rs786.83m during this review quarter.

On the tax front, the bank paid Rs297.01m, against a tax expense of Rs226.52m reported in Q1 CY23.

The increase in the bank's operating expenses, along with higher credit loss allowances and taxation, outweighed the growth in total income, resulting in a reduced profit for the quarter.

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