Soneri Bank Reports Rs 5.9 Billion Profit After Tax for 2024

KARACHI:Soneri Bank Limitedhas announced its financial results for the year ended December 31, 2024, reflecting consistent growth despite economic challenges. The results were approved during the Bank’s 209th Board of Directors meeting held in Karachi and chaired by Amin A. Feerasta. The Bank reported aProfit Before Tax (PBT) of Rs 12.638 billionand aProfit After Tax (PAT) of Rs 5.901 billion, compared toRs 12.357 billionandRs 6.075 billionrespectively in 2023. This represents a2.27 percent increase in PBT, despite a declining interest rate environment and margin pressures. However, the PAT saw a2.87 percent decline, attributed to additional taxation on banking companies introduced via the Income Tax (Amendment Ordinance), 2024. TheEarnings Per Share (EPS)for the year stood atRs 5.3528, slightly lower thanRs 5.5108in 2023. Soneri Bank’sNet Interest Incomegrew by9.62 percent, reachingRs 24,948 million, up fromRs 22,759 millionin 2023. This increase was driven by improved volumes and spreads. Additionally, the Bank’snon-interest incomerose toRs 6,755 million, marking a4.58 percent increasefromRs 6,459 millionin 2023. This growth was supported by a36.91 percent year-on-year increase in trade volumes. Meanwhile,non-markup expensesstood atRs 19,525 million, up26.20 percentfromRs 15,471 millionin the previous year. Despite inflationary pressures and an ongoing branch expansion drive, cost control measures helped contain the rise in expenses. Soneri Bank expanded its network significantly, increasing its branch count from443 branches in December 2023 to 544 branches by the end of 2024, adding101 new branches nationwide. The Bank’stotal depositsgrew by4.88 percenttoRs 543,146 million, compared toRs 518,009 millionin 2023. The CASA mix improved to82.56 percent, up from79.60 percent. Thenet advances portfolioincreased by18.28 percent, reachingRs 243,366 million, whilenet investmentsrose by23.83 percent, amounting toRs 384,306 millionby the end of 2024. The Bank significantly reduced itsnon-performing loans (NPL)ratioto3.13 percent, compared to4.90 percentin 2023, due to strong recovery efforts and the implementation of theSBP’s charge-off policy. Thespecific coverage ratioimproved to90.02 percent(from80.01 percent), whileoverall coverage, including Expected Credit Loss provision underIFRS 9, stood at102.90 percent. Soneri Bank remains well-capitalized with aCapital Adequacy Ratio (CAR) of 17.69 percent. TheLiquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR)were reported at176.91 percentand157.15 percent, respectively, well above regulatory requirements. The Bank remains focused onenhancing shareholder valuethrough acustomer-centric business strategythat serves the needs of its diverse clientele across multiple business segments. The leadership remains optimistic about sustained growth and further expansion in the coming years.