Silkbank maintains growth momentum PBT up by 87%

F.P. Report

KARACHI: The Board of Directors of Silkbank Limited, in its meeting held on Thursday, reviewed the performance of the Bank and approved the financial statements for the first quarter ended March 31st, 2018. The Bank has posted a Profit before Tax of Rs. 401 million and Profit after Tax of Rs. 260 million. This translates into a growth of 87% and 91%, respectively, over the same period last year.

This performance was driven by a formidable growth of 23% in Net Interest Income, with Non-Interest Income also reflecting an impressive rise of 62%.

During the quarter, total deposits of the Bank grew by 10%, i.e. an increase by Rs. 11.3 billion to Rs. 121.6 billion, primarily via a significant growth of 17% in CASA. This has led the CASA ratio to improve by 4% from 61% as of end December, 2017 to 65% in Q1 2018. Gross advances increased by Rs. 5.7 billion reflecting a growth of 6.3%. Net infection ratio improved to 2% in Q1 2018 as against 2.5% as at end December 2017. Coverage ratio also improved from 64% to 68%.

In order to provide a platform to cater for the unbanked population, the Bank is planning to launch shortly Digital Banking to increase its outreach and its distribution footprint. Additionally, the Bank will also increase the number of branches at strategic locations across the country which will enhance the Bank’s ability to mobilize deposits and subsequently lend and invest increasingly in earning assets.