Soneri Bank’s bottom-line gains uplifted despite deteriorating income

October 26, 2018 (MLN): Soneri Bank Limited (SNBL) has reported its cumulative profit for the three quarters of current year at Rs.1.3 billion, marking an increase of 5% over the gains in the corresponding period of last year.

SNBL’s net mark-up/return/interest income after provisions was uplifted considerably (+Rs.654 million), by reversals on provision against loans and advances (Rs.317.4 million).

However, as gain on sales of securities dropped by 73% (-Rs.758 million) it had the largest impact on the fall of total non-mark-up/interest income (-Rs.338 million).

Moreover, administrative expenses rose by Rs.251 million.

Nonetheless, Soneri Bank not only balanced the negative impact of these components, but also managed to ensure growth in profits.

SNBL’s basic and diluted earnings per share are Rs.1.17 per share.

Profit and Loss account for the nine months ended September 30th 2018 ('000 Rupees)

 

Sep-18

Sep-17

% Change

Mark-up/return/interest earned

           15,114,013

           13,653,406

10.70%

Mark-up/return/interest expensed

             9,971,567

             8,747,880

13.99%

Net mark-up/return/interest income

             5,142,446

             4,905,526

4.83%

(Reversal of Provision)/provision against loans and advances – net

              (317,432)

                   99,756

 

Reversal of provision against diminution in the value of investments – net

                            –  

                            –  

 

Bad debts written off directly

                            –  

                           12

 

Net mark-up/return/interest income after provisions

             5,459,878

             4,805,758

13.61%

Non mark-up/interest income

 

 

 

Fee, commission and brokerage income

             1,167,838

             1,041,700

12.11%

Dividend income

                 152,973

                 146,048

4.74%

Income from dealing in foreign currencies – net

                 565,414

                 283,787

99.24%

Unrealized loss on revaluation of investments classified as held-for-trading – net

                   (2,069)

                     3,298

 

Gain on sale of securities – net

                 275,100

             1,032,986

-73.37%

Other income

                   32,666

                   22,227

46.97%

Total non-mark-up/interest income

             2,191,922

             2,530,046

-13.36%

Non mark-up/interest expense

 

 

 

Administrative expenses

             5,416,289

             5,165,321

4.86%

Provision against other assets – net

                            –  

                            –  

 

Other charges

                   68,242

                   70,775

-3.58%

Total non-mark-up/interest expenses

             5,484,531

             5,236,096

4.74%

Extraordinary/ unusual items

                            –  

                            –  

 

Profit before taxation

             2,167,269

             2,099,708

3.22%

Taxation

                 873,661

                 868,361

0.61%

Profit after taxation

             1,293,608

             1,231,347

5.06%

Earnings per share  – basic and diluted (rupees)

                        1.17

                        1.12

4.46%

 

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Posted on: 2018-10-26T15:09:00+05:00

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