February 13, 2020 (MLN): Soneri Bank Limited has announced the financial result for the year ended December 31, 2019, as per which the bank has witnessed a growth of 6.8% in its net earnings, from Rs. 1.78 billion last year to Rs. 1.9 billion this year.
The Net Mark-up Income of the bank rose by nearly 14% during the period, despite a substantial rise of 110% in the interest expense. On the other hand, the Non-Markup Interest Income fell by 12.2% owing to presence of losses pertaining to sale of securities.
The operating expense of the Bank swelled by 10.3%, while Workers’ Welfare Fund and Other charges increased by 97.6% and 191.6% respectively.
Another significant highlight of the results was the sevenfold increase in reversals, from Rs. 71 million last year to Rs. 588 million this year, which exerted further downward pressure on the earnings.
The Board of Directors of the Bank also announced a Final Cash Dividend of Rs. 1 for the aforesaid period.
Profit and Loss account for the year ended December 31, 2019 ('000 Rupees) | |||
|---|---|---|---|
Dec-19 | Dec-18 | % Change | |
Mark-up/return/interest earned | 38,790,413 | 21,599,792 | 79.59% |
Mark-up/return/interest expensed | 30,864,247 | 14,646,799 | 110.72% |
Net mark-up/return/interest income | 7,926,166 | 6,952,993 | 14.00% |
Non mark-up/interest income | |||
Fee and commission income | 1,874,447 | 1,705,716 | 9.89% |
Dividend income | 332,221 | 258,938 | 28.30% |
Foreign exchange income | 1,141,514 | 988,637 | 15.46% |
(Loss) / Gain on sale of securities – net | (523,831) | 260,127 | |
Other income | 36,811 | 46,753 | -21.26% |
Total non-mark-up/interest income | 2,861,162 | 3,260,171 | -12.24% |
Total income | 10,787,328 | 10,213,164 | 5.62% |
Non mark-up/interest expense | |||
Operating expenses | 8,190,466 | 7,420,176 | 10.38% |
Workers' welfare fund | (120,733) | (61,077) | 97.67% |
Other charges | 59,748 | 20,484 | 191.68% |
Total non-mark-up/interest expenses | 8,129,481 | 7,379,583 | 10.16% |
Profit before provisions | 2,657,847 | 2,833,581 | -6.20% |
(Reversals) / provisions and write-offs – net | (588,899) | (71,072) | 728.59% |
Extraordinary / unusual items | – | – | |
Profit before taxation | 3,246,746 | 2,904,653 | 11.78% |
Taxation | 1,340,722 | 1,120,989 | 19.60% |
Profit after taxation | 1,906,024 | 1,783,664 | 6.86% |
Earnings per share – basic and diluted (rupees) | 1.7289 | 1.6179 | 6.86% |
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