SBP incurs net loss of Rs 1.04 billion in FY19 due to a 6x increase in exchange loss

October 31, 2019 (MLN): The Board of Directors of the State Bank of Pakistan, in its meeting held on October 12, 2019, approved the Annual Performance Review on the working of the Bank and its subsidiaries and the financial statements for the year ended June 30, 2019.

According to the report, SBP has incurred a net loss of Rs. 1,043 million in FY19 as compared to a profit of Rs. 175,673 million in FY18. The decline is primarily attributed to an exchange loss of Rs. 506,131 million during the current year as compared to an exchange loss of Rs. 72,280 million in the previous year.

The decrease was, however, partly offset by an increase of Rs. 254,351 million in the net interest income. The lending to the Federal Government remained the major source of SBP’s profit followed by earnings on the OMO injections.

These major income streams are offset by the increase in interest expense on liquidity mop-up from the domestic financial market and an increase in interest expense on international deposits. The expenses also witnessed a growth of 5 percent during the year.

The note printing charges and General administrative and other expenses are the major expense heads that witnessed growth while agency commission paid to agent commercial banks for undertaking government banking business on behalf of the Bank witnessed slight decrease during the year.

Profit and Loss Accounts for the year ended June 30, 2019 (Rupees'000)

 

2019

2018

% Change

Discount, interest / mark-up and / or profit earned on financial assets measured at:

   

Amortized cost

646,009,384

314,537,779

105.38%

Fair value through profit or loss

10,943,995

9,141,663

19.72%

Less: interest / mark-up expense

(110,763,556)

(31,840,438)

247.87%

 

546,189,823

291,839,004

87.15%

Commission income

4,136,396

4,083,398

1.30%

Exchange loss – net

(506,131,054)

(72,280,199)

600.23%

Dividend income

390,000

415,000

-6.02%

Share of profit from associates

702,297

691,417

1.57%

Other operating income / (expense) – net

4,346,933

(774,507)

 

Other income – net

318,414

796,526

-60.02%

 

49,952,809

224,770,639

-77.78%

Less: Operating expenses

   

Cost of printing bank notes and Prize Bonds

11,419,149

9,362,218

21.97%

Agency commission

10,642,735

10,945,396

-2.77%

General administrative and other expenses

27,909,418

27,705,611

0.74%

    

Provision for / (reversal of provision against):

   

Other doubtful assets

456,042

76,145

498.91%

Others

(76)

  

Credit loss allowance on financial instruments – net

39,622

(39,497)

 
 

50,466,890

48,049,873

5.03%

(Loss) / profit before taxation

(514,081)

176,720,766

 

Taxation

529,222

1,048,115

-49.51%

(Loss) / profit after taxation

(1,043,303)

175,672,651

 

 

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Posted on: 2019-10-31T11:56:00+05:00

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