August 27, 2020 (MLN): Soneri Bank has reported a 16% increase in its profits for the half-year ended June 30, 2020, from Rs. 974.9 million (EPS: 0.8844) to Rs. 1.13 billion (EPS: 1.0243).
The growth in the bank’s earnings was mainly led by an increase in the net interest income by 37%, as well as non-interest income by 89%. Both of these factors prompted the total income to increase by 49%.
The massive increase in non-interest income can be attributed to Foreign exchange income and non-core income, as both of them increase by 19% and 24%, respectively. The presence of capital gains further helped in alleviating the total income of the bank.
On the other hand, the total expenses surged by just 11%, that too because of higher operating expenses and non-core charges.
The biggest blow to the financial position of Soneri Bank was the payment of provisions amounting to Rs. 1.02 billion, which ultimately caused the profit margins to lessen significantly.
Consolidated Financial Results for the half-year ended June 30, 2020 (Rupees'000) | |||
|---|---|---|---|
Jun-20 | Jun-19 | % Change | |
Mark-up / return / interest earned | 23,388,495 | 15,454,193 | 51% |
Mark-up / return / interest expensed | (18,033,530) | (11,558,614) | 56% |
Net mark-up / interest income | 5,354,965 | 3,895,579 | 37% |
NON-MARK-UP / INTEREST INCOME | |||
Fee and commission income | 837,227 | 905,424 | -8% |
Dividend income | 81,951 | 139,367 | -41% |
Foreign exchange income | 624,095 | 525,938 | 19% |
Gain / (loss) on securities – net | 498,492 | (494,607) | |
Other income | 20,332 | 16,368 | 24% |
Total non-markup / interest income | 2,062,097 | 1,092,490 | 89% |
Total income | 7,417,062 | 4,988,069 | 49% |
NON-MARK-UP / INTEREST EXPENSES | |||
Operating expenses | (4,339,061) | (4,087,882) | 6% |
Workers welfare fund | (43,120) | 123,004 | |
Other charges | (74,812) | (59,351) | 26% |
Total non-markup / interest expenses | (4,456,993) | (4,024,229) | 11% |
Profit before provisions | 2,960,069 | 963,840 | 207% |
Provisions and write offs – net | (1,029,121) | 668,856 | |
Extraordinary/unusual items | |||
PROFIT BEFORE TAXATION | 1,930,948 | 1,632,696 | 18% |
Taxation | (801,643) | (657,697) | 22% |
PROFIT AFTER TAXATION | 1,129,305 | 974,999 | 16% |
Earnings per share | 1.0243 | 0.8844 | 16% |
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