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|
|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%|
|Foreign exchange income||1,037,446||1,141,514||-9.10%|
|Gain/(loss) on securities – net||818,393||(523,831)|
|Total non-markup / interest income||3,807,495||2,861,162||33.10%|
|Workers welfare fund – net||(85,718)||120,733|
|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%|
|PROFIT AFTER TAXATION||2,400,272||1,906,024||25.90%|
|Basic and diluted earnings per share||2.18||1.73|