Soneri Bank Limited announced its Annual Financial Results for the year 2020 where it posted net profit of PKR 2.4 billion (EPS: 2.17) for the year ended December 31, 2020, marking a 26% increase as compared to the profits earned last year.
As expected, the Bank also announced a final Cash Dividend of Rs. 1.25 per share i.e. 12.50% for the year.
As per the financial statement, the net interest income increased by 34% during the year owing to higher interest income earned. The non-interest income also rose by ~33% primarily due to an increase in Capital Gains which increased to PKR 814 million. However, Fee income declined by 5%, dividend income fell by 59%, and forex income decreased by 9%.
The total expenses of the bank increased by 11% due to an increase in operating expenses by 8% and payment of Rs. 85.7 million made in workers’ welfare fund.
The bank also expensed increased provisioning of PKR 1.4 billion during the year, which decreased the Profit Before Tax.
| Rupees in ‘000 | Dec-20 | Dec-19 | % Change |
| Mark-up/return/interest earned | 42,228,185 | 38,790,413 | 8.90% |
| Mark-up/return/interest expensed | (31,572,929) | (30,864,247) | 2.30% |
| Net mark-up and interest income | 10,655,256 | 7,926,166 | 34.40% |
| Fee and commission income | 1,774,841 | 1,874,447 | -5.30% |
| Dividend income | 134,133 | 332,221 | -59.60% |
| Foreign exchange income | 1,037,446 | 1,141,514 | -9.10% |
| Gain/(loss) on securities – net | 818,393 | (523,831) | |
| Other income | 42,682 | 36,811 | 15.90% |
| Total non-markup / interest income | 3,807,495 | 2,861,162 | 33.10% |
| Total income | 14,462,751 | 10,787,328 | 34.10% |
| Operating expenses | (8,857,542) | (8,190,466) | 8.10% |
| Workers welfare fund – net | (85,718) | 120,733 | |
| Other charges | (83,033) | (59,748) | 39.00% |
| Total non-markup / interest expenses | (9,026,293) | (8,129,481) | 11.00% |
| Profit before provisions | 5,436,458 | 2,657,847 | 104.50% |
| Provisions/(Reversals) and write offs – net | (1,401,703) | 588,899 | |
| PROFIT BEFORE TAXATION | 4,034,755 | 3,246,746 | 24.30% |
| Taxation | (1,634,483) | (1,340,722) | 21.90% |
| PROFIT AFTER TAXATION | 2,400,272 | 1,906,024 | 25.90% |
| Basic and diluted earnings per share | 2.18 | 1.73 |
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