Soneri Bank Limited (SNBL), listed on the Pakistan Stock Exchange, reported a substantial increase in profits by 222.61% in 2023. The bank also doubled its net interest income and witnessed significant growth in its investment portfolio during the year.
1. Profitability Analysis:
Soneri Bank Limited has demonstrated a robust financial performance for the year ended 31 December 2023. The bank recorded a substantial growth in Profit Before Tax (PBT) which amounted to Rs. 12,357.115 million, marking a significant increase from Rs. 4,554.021 million in the prior year, reflecting a growth of approximately 171.51%. Similarly, the Profit After Tax (PAT) for the year stood at Rs. 6,075.460 million compared to Rs. 1,883.243 million in the previous year, showcasing an impressive growth of approximately 222.61%.
2. Earnings per Share (EPS):
The Earnings per Share (EPS) increased substantially from Rs. 1.7082 per share in 2022 to Rs. 5.5108 per share in 2023, marking a remarkable growth of 222.61% year-on-year.
3. Net Interest Income (NII) and Non-Interest Income:
The Bank’s Net Interest Income (NII) doubled to Rs. 22.759 billion in 2023 compared to Rs. 11.267 billion in the prior year, representing an increase of 102.00%. Non-interest income also exhibited a healthy growth of 25.23%, reaching Rs. 6.459 billion in 2023, mainly driven by improved fee and commission income.
4. Revenue Growth:
The overall revenue of the bank indicated a substantial improvement, growing by Rs. 12.793 billion or 77.89% year-on-year, attributed to significant growth in both net interest and non-interest income.
5. Investment Portfolio:
The bank’s investment portfolio witnessed growth, with the year-end position standing at Rs. 310.341 billion compared to Rs. 258.007 billion in the prior year, reflecting a growth of 39.66% year-on-year. Income from investments also increased impressively to Rs. 60.609 billion in 2023 compared to Rs. 37.005 billion in the prior year.
6. Advances and Deposits:
Although the average net advances decreased slightly to Rs. 179.648 billion in 2023, the income from advances increased to Rs. 34.211 billion compared to Rs. 24.076 billion in the prior year. The bank’s overall deposits showed significant growth, reaching Rs. 517.869 billion in 2023, marking an impressive increase of Rs. 108.226 billion or 26.42% year-on-year.
7. Cost Management:
Non-Markup expenses increased by 26.35% to Rs. 15.471 billion in 2023 compared to Rs. 12.245 billion in the prior year. However, the management pursued strict cost rationalization measures to maintain overall cost levels within targeted levels amidst inflationary trends.
8. Provisions and Asset Quality:
Net provisions against loans and advances and investments amounted to Rs. 1,389.282 million in 2023, indicating a reversal from the prior year’s net reversal of Rs. 374.569 million. The Non-Performing Loans (NPL) to Total Advances ratio stood at 4.90% in 2023 compared to 4.71% in the prior year, with Specific provisioning coverage improving to 80.01% from 71.61% in December 2022.
9. Taxation:
The overall effective tax rate for the bank decreased to 50.83% in 2023 compared to 58.65% in the prior year.
0
0
