Summit Bank's loss widens to Rs3.79bn in 9MCY23

October 27, 2023 (MLN): Summit Bank Limited (PSX: SMBL) announced its results for the nine months of 2023, wherein the bank’s net loss soared by 88.08% to Rs3.79 billion [LPS: Rs0.77] compared to Rs2.01bn [LPS: Rs0.76] loss recorded in the same period last year (SPLY).

Going by the income statement made available by the company on the PSX, the bank’s net markup expense inched up by 1.51% YoY, to clock in at Rs1.73bn against Rs1.7bn incurred in the SPLY.

On the other hand, the bank’s total non-markup interest income improved by 4.91% YoY to Rs1.08bn as compared to Rs1.03bn in SPLY.

This was due to an increase in foreign exchange income of 31.33% YoY to Rs479.37m in 9MCY23.

Moreover, SMBL incurred a loss on securities of Rs495.86m, compared to a gain of Rs14.74m in the SPLY, this further contributed to the bank's overall losses.

The profit and loss statement further shows that the nine months’ total non-mark-up/interest expenses stood at Rs5.31bn, up by 20.41% YoY.

The decline in net interest earnings coupled with rising operating costs widened the loss for the bank during the review period.

On the taxation front, the bank incurred a tax rebate of Rs2.08bn, 41.78% YoY lower than the tax rebate of Rs3.58bn recorded in SPLY.

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