Soneri Bank Posts Rs 1.15 Billion Profit After Tax in Q1-2025

KARACHI – April 17, 2025—Soneri Bank Limitedannounced its financial results for the quarter ended March 31, 2025, following the approval of its condensed interim financial statements by the Board of Directors at its 210th meeting held in Karachi. The Bank reported aProfit Before Tax (PBT)ofRs 3.34 billionandProfit After Tax (PAT)ofRs 1.15 billionfor Q1 2025, reflecting a decline fromRs 3.55 billionandRs 1.76 billionrespectively in the same period last year. The decline in PAT is largely attributed to the increased tax burden following the implementation of theIncome Tax (Amendment Ordinance), 2024, which raised the effective tax rate for banking companies to65.62%, compared to50.48%in Q1 2024. Earnings per share (EPS)stood atRs 1.0406for the quarter, down fromRs 1.5965in the corresponding period of 2024. Despite narrowing spreads, the Bank postednet interest incomeofRs 7.29 billion, a growth of24.62%compared toRs 5.85 billionin Q1 2024, driven by improved volumes.Non-interest incomeslightly dipped toRs 1.56 billion, compared toRs 1.60 billionin the prior period, due to lower foreign exchange-related income. However, this was partially offset by an increase in fee and commission income. Operating expensesrose toRs 5.22 billion, an18.93%increase fromRs 4.39 billionlast year. This increase was contained despite high inflation and continued branch network expansion, thanks to the Bank’s strict cost rationalization and control measures. As of March 31, 2025, Soneri Bank operates a network of551 branches, up from544at year-end 2024, reflecting its strategic focus on footprint expansion. The Bank’stotal depositsgrew by5.17%over the previous quarter, closing atRs 571.23 billion, with theCASA (Current Account Savings Account) miximproving to83.13%, compared to81.94%as of December 31, 2024. Thenet advances portfoliostood atRs 197.86 billion, down18.70%from year-end 2024 levels. Meanwhile,net investmentsrose by21.01%, increasing byRs 80.73 billiontoRs 465.03 billion. The Bank’sNon-Performing Loans (NPL) to total advances ratiorose to3.95%, from3.13%at year-end, whilespecific coveragewas maintained at89.63%. Overall coverage, including Expected Credit Losses under IFRS 9, improved to103.93%. Soneri Bank remains well-capitalized, reporting aCapital Adequacy Ratio (CAR)of15.25%as of March 31, 2025. TheBank reiterated its commitment to enhancing shareholdervalue through a customer-centric strategy aimed at meeting the evolving needs of clients across all segments.