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Home Equity Soneri Bank witnesses a 6.8% increase in net profits
  • Equity

Soneri Bank witnesses a 6.8% increase in net profits

By
News Desk
-
February 13, 2020

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%

Copyright Mettis Link News

Posted on: 2020-02-13T15:42:00+05:00

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