Shareholders of Soneri Bank approve 2022 annual results

F.P. Report

KARACHI: The annual audited financial statements of Soneri Bank Limited for the year ended 31 December 2022 were approved by the shareholders of the Bank in their 31st AGM held in Lahore and through video- link via Zoom on Monday, 27 March 2023. The meeting was chaired by Mr. Alauddin Feerasta, Chairman of the Board, with Mr. Muhtashim Ahmad Ashai, President and Chief Executive Officer and other members of the Board of Directors also in attendance.

The Bank posted profit before tax (PBT) of Rs. 4,554 million and profit after tax (PAT) of Rs. 1,883 million in the year 2022, as compared to Rs. 5,149 million and Rs. 2,854 million respectively in 2021. Earnings per share (EPS) for the year was reported at Rs. 1.71 per share for the current year, as compared to Rs. 2.59 for the comparative prior year. During the meeting, the shareholders approved the final cash dividend for the year ended 31 December 2022 @ 10.00 percent i.e. Rs. 1.00 per share, as recommended earlier by the Board of Directors.

Briefing the shareholders on the financial results, the President and CEO mentioned that Bank’s Net Interest income for the year was reported at Rs. 11,267 million, increasing by 3.01 percent against Rs. 10,938 million for the prior year, while non-interest income increased by 20.21 percent to end at Rs. 5,157 million as against Rs. 4,290 million for the last year. He also mentioned that despite inflationary pressures, growth in expenses was restricted at 20.16 percent as compared to the prior year with Non-markup expenses reported at Rs. 12,245 million for the year ended December 2022. He further explained that due to the changes introduced by the Finance Act 2022, the overall effective tax rate for the Bank for the year ended 31 December 2022 stood at 58.65 percent (2021: 44.57 percent).

Bank’s Deposits registered an increase of 1.64 percent when compared to 31 December 2021, ending at Rs. 409,643 million at 31 December 2022. However, the Bank’s CA mix improved to 32.73 percent in December 2022 as against 27.17 percent at December 2021, with year end Current deposits at Rs. 134,080 million as against Rs. 109,494 million at the year end 2021.

The Bank’s net advances portfolio increased to Rs. 208,434 million as at 31 December 2022, 25.95 percent higher than the year end 2021 level, while the Bank’s Non-performing loans to total Advances ratio improved to 4.71 percent (December 2021: 5.95 percent). Specific coverage was at 71.61 percent (December 2021: 76.51 percent).

The Bank’s ADR at 31 December 2022 was at 52.67%, and Capital Adequacy Ratio was reported at 15.19%.