November 14, 2024 (MLN): Silkbank Limited (PSX: SILK) reported its annual financial statement for the year ended December 31, 2021, showing a substantial increase in losses to Rs12.28 billion (LPS: Rs1.35).
This compares to a loss of Rs6.57bn (LPS: Rs0.72) in the previous year.
The widening losses were driven by negative non-markup income and significantly higher tax expenses.
Going by the income statement made available by the company on the PSX, the bank saw its net markup interest income rise 64.61% to Rs2.89bn in 2021.
Conversely, the bank’s total non-markup income fell to a negative Rs3.92bn, driven by a shift from income on securities to losses, along with substantial other losses reported by the bank.
The bank's total non-mark-up/interest expenses of SILK stood at Rs7.61bn, unchanged compared to 2020.
SBL's net credit loss allowance and write-offs inched up to Rs9.95bn during the review year.
On the tax front, the bank paid Rs3.66bn, against a tax expense of Rs3.12bn reported in 2020.
| Profit and Loss Account for the year ended December 31, 2021 ('000 Rupees) | |||
|---|---|---|---|
| Dec-21 | Dec-20 | % Change | |
| Mark-up/return/interest earned | 16,605,275 | 22,660,455 | -26.72% |
| Mark-up/return/interest expensed | (13,772,039) | (20,939,321) | -34.23% |
| Net mark-up/ interest income | 2,833,236 | 1,721,134 | 64.61% |
| NON MARK-UP/INTEREST INCOME | |||
| Fee, commission and brokerage income | 2,358,726 | 2,233,451 | 5.61% |
| Dividend income | – | 10,673 | -100.00% |
| Income from dealing in foreign currencies | 279,879 | 228,626 | 22.42% |
| Loss on derivatives | (81,093) | 98,162 | |
| Loss on sale of securities – net | (1,580,710) | 3,737,433 | -182.61% |
| Other income | (4,897,308) | (212,329) | 2206.47% |
| Total non-mark-up /interest income | (3,920,506) | 6,096,016 | -164.31% |
| NON MARK-UP/INTEREST EXPENSES | |||
| Operating expenses | (7,453,013) | (7,574,453) | -1.60% |
| Workers Welfare Fund | – | – | – |
| Other charges | (152,583) | (35,561) | 329.07% |
| Total non-mark-up /interest expenses | (7,605,596) | (7,610,014) | -0.06% |
| Other (provisions)/(write-off)/reversal – net | (9,946,449) | (9,898,597) | 0.48% |
| Extra-ordinary/unusual items | – | ||
| Profit before taxation | (18,639,315) | (9,691,461) | 92.33% |
| Taxation | 6,358,094 | 3,119,609 | 103.81% |
| Loss after taxation | (12,281,221) | (6,571,852) | 86.88% |
| Loss per share (basic and diluted) | (1.35) | (0.72) | – |
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Posted on: 2024-11-14T15:15:56+05:00
