Soneri Bank’s earnings increase by 16% during 1HCY20

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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Posted on: 2020-08-27T11:50:00+05:00

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