LAHORE: Silkbank Limited board of directors, in a meeting held on October 26, declared an operating profit of Rs 1.2 billion, with a profit of Rs 751 million after taxes, for the nine months ended September 30, 2017. The profit reflects a growth of 49% as compared to financial results of the same period last year.
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, the bank said in a statement.
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 in 2016.
The bank registered a growth of 22% in its current account portfolio. The strong current account growth continued, and combined with a strong savings account momentum, the bank deposits grew altogether by 24% in the first nine months of 2017. With the influx of 35 new branches this year, Silkbank is expected to further build its business momentum.
On the advances side, the bank grew by Rs 17 billion. High-yielding consumer assets continued to contribute to the bank’s profitability and were expected to further improve the bank’s profitability in the future. The increase in Islamic financing also made a significant contribution in overall profitability of the bank.
The bank experienced a major reduction in its net infection ratio which stood at 1.68% compared to 3.73% of the corresponding period last year. As of September 30, 2017 nonperforming loans dropped by 37% as compared to the same period last year.
The sale of repossessed properties continued to support bank’s profitability and with rising real estate prices, this momentum is expected to carry on, the bank said.
Published in Daily Times, October 27th 2017.