September 30, 2020 (MLN): Silk Bank Limited has witnessed a whopping 16x increased in net profits to Rs 1.88 billion for the six months ended on June 30th 2020, compared to the profits of Rs 116.8 million in the corresponding period of last year.
This reflected in bank’s earnings per share which depicted mammoth 21x increase from Rs 0.01 to Rs 0.21 per share.
A cumulative cut of 625 bps in policy rate during 2HFY20 from 13.25% to 7% has enabled the bank to earn 23% YoY higher interest income but due to rise in interest expenses by a greater margin (up by 80% YoY) its net interest income reduced by 75% YoY.
On the positive side, the bank realized a capital gain of Rs 5.5 billion which helped in lifting its non-interest income by 411% YoY.
On the expense side, the bank’s operating expenses went down by almost 6.5% and other charges declined by 86.2% YoY, as result, its non-mark-up /interest expenses shrank by 7.5% YoY.
|
Profit and Loss Account for the half year ended June 30, 2020 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-20 |
Jun-19 |
% Change |
|
Mark-up/return/interest earned |
11,818,352 |
9,549,836 |
23.75% |
|
Mark-up/return/interest expensed |
(10,951,324) |
(6,076,277) |
80.23% |
|
Net mark-up/ interest income |
867,028 |
3,473,559 |
-75.04% |
|
NON-MARK-UP/INTEREST INCOME |
|
|
|
|
Fee, commission and brokerage income |
1,087,109 |
1,057,416 |
2.81% |
|
Dividend income |
– |
3,425 |
-100.00% |
|
Income from dealing in foreign currencies |
(504,907) |
(741,342) |
-31.89% |
|
loss/income from derivatives |
722,819 |
1,026,583 |
-29.59% |
|
Gain/ loss on securities |
5,563,979 |
(39,908) |
|
|
other income/ loss |
51,622 |
47,254 |
9.24% |
|
Total non-mark-up /interest income |
6,920,622 |
1,353,428 |
411.34% |
|
NON-MARK-UP/INTEREST EXPENSES |
|
|
|
|
Operating expenses |
(3,587,288) |
(3,838,901) |
-6.55% |
|
Workers Welfare Fund |
(64,890) |
(5,186) |
1151.25% |
|
Other charges |
(17,235) |
(125,092) |
-86.22% |
|
Total non-mark-up /interest expenses |
(3,669,413) |
(3,969,179) |
-7.55% |
|
Other (provisions)/(write-off)/reversal – net |
(938,632) |
(603,680) |
55.49% |
|
Extra-ordinary/unusual items |
– |
– |
|
|
Profit before taxation |
3,179,605 |
254,128 |
1151.18% |
|
Taxation |
(1,293,146) |
(137,297) |
841.86% |
|
Profit after taxation |
1,886,459 |
116,831 |
1514.69% |
|
Earnings per share (basic and diluted) |
0.21 |
0.01 |
2000.00% |
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