SBML's loss rises 2.53x YoY to Rs1.73bn in 1HCY23

August 25, 2023 (MLN): Summit Bank Limited (PSX: SBML) has revealed its financial statement today for the half year ended June 30, 2023, as per which the bank posted a loss after tax worth Rs1.73 billion [LPS: Rs0.43], depicting a significant rise of 2.53x YoY, compared to Rs686.62 million [LPS: Rs0.25] in the same period last year (SPLY), bank’s filing on PSX showed today.

Going by the income statement, the bank witnessed a massive increase of 3.54x in its interest income interest-earning to stand at Rs10.10bn, compared to Rs2.85bn in SPLY.

However, at the same time, the net interest expenses increased massively by 2.90x to Rs11.11bn which resulted in a net interest loss of Rs1.01bn in 1HCY23 as compared to a loss of Rs982.14 million in SPLY, depicting a 3.02% rise.

Conversely, the bank’s total Non-Markup income rose by 41.52% YoY to Rs799.59m with a rise in Income from dealing in foreign currencies to clock in at Rs588.98m as compared to Rs295.42m in SPLY.

Furthermore, the Fee, commission, and brokerage income increased by 27.74% to Rs306.57m in 1HCY23.

However, the increase in Non-Markup income was not significant enough to offset the loss from the markup side and the total income went to negative Rs212.21m in 1HCY23.

On the expense side, the total non-markup expenses rose to Rs3.37bn in 1HCY23 compared to Rs2.84bn in SPLY, depicting an increase of 18.63%.

In addition, the bank incurred a provision reversal of Rs831.87m during the review period compared to a provision expense of Rs239.06m in the corresponding period last year.

As SMBL posted a loss before tax, a tax rebate of Rs1.02bn was recorded which brought the loss after tax to Rs1.73bn.

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