F.P. Report
KARACHI: The Board of Directors of Silkbank Limited in their meeting held on October 26, 2017 declared an Operating Profit of Rs. 1.2 billion with a Profit after Taxes of Rs. 751 million, reflecting a growth of 49% over the results of the same period last year, for the nine months ended on September 30, 2017.
Net Interest Income grew by Rs. 755 million, reflecting a growth of 23% over the corresponding period last year. The increase was due to an improved balance sheet spread, resulting from lower cost of funds.
No-Funded Income (NFI) for the nine months showed a growth of 17% and Cumulative Net Revenue (CNR) by 21%, whereas margin registered a growth of 33% for the same period over 2016.
The Bank registered an impressive growth of 22% in its Current Account portfolio. The strong Current Account growth continues and together with a strong Savings Account momentum, the Bank deposit grew altogether by 24% over the period of December 31, 2016. With the influx of 35 new branches this year, Silkbank is expected to further build its business momentum which will further add to its profitability.
On the advances side, the Bank grew by Rs. 17 billion. High-yielding consumer assets continued to contribute in the Bank’s profitability and are expected to further improve the Bank’s profitability in the future. The increase in Islamic Financing has also made a significant contribution in overall profitability of the Bank.
The Bank experienced a major reduction in its net infection ratio which stands at 1.68% compared to 3.73% of the corresponding period last year. As at September 30, 2017 NPL’s dropped by 37% over the same period last year. The sale of repossessed properties (OREO) continues to support Bank’s profitability and with the rising real estate prices, this momentum is expected to carry on.
Silkbank stands fully compliant on SBP’s Minimum Capital Requirement (MCR) as well as the Capital Adequacy Ratios (CAR). The Bank’s Capital Adequacy Ratio will get a further boost by the recent successful issuance of Rs. 2 billion TFC issued by Silkbank.
