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 ‘000Dec-20Dec-19% Change
Mark-up/return/interest earned42,228,18538,790,4138.90%
Mark-up/return/interest expensed(31,572,929)(30,864,247)2.30%
Net mark-up and interest income10,655,2567,926,16634.40%
Fee and commission income1,774,8411,874,447-5.30%
Dividend income134,133332,221-59.60%
Foreign exchange income1,037,4461,141,514-9.10%
Gain/(loss) on securities – net818,393(523,831) 
Other income42,68236,81115.90%
Total non-markup / interest income3,807,4952,861,16233.10%
Total income14,462,75110,787,32834.10%
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 provisions5,436,4582,657,847104.50%
Provisions/(Reversals) and write offs – net(1,401,703)588,899 
PROFIT BEFORE TAXATION4,034,7553,246,74624.30%
PROFIT AFTER TAXATION2,400,2721,906,02425.90%
Basic and diluted earnings per share2.181.73 
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