Silkbank announced their September 30, 2019, December 31, 2019 and March 31, 2020 financial results yesterday. The Bank has cleaned up its balance sheet by prudently identifying weak accounts and providing for them and has shown significant improvement in its performance in the March 2020 Quarter. The Bank also reported that in the declining discount rate scenario, it has been building a PIB portfolio which now stands at approximately Rs. 91bn. The Bank has already realized capital gains of Rs. 1.5bn for the September 2019 to March 2020 period and has booked an impressive gain of Rs. 4.4bn and Mark to Market (MTM) of approximately Rs. 1.4bn in the second quarter of 2020. This will more than mitigate the losses reported for 2019 and the first Quarter 2020. The Bank’s progress in 2019 was curtailed due to decline in real estate prices on account of the economic situation in the country. As a result, the bank had to classify lucrative real estate loans on prudent basis with a concrete recovery plan in place.Furthermore, the State Bank of Pakistan during its last inspection identified security shortfall in the real estate portfolio collateral. However, with the support of SBP, the shortfall has been more than adequately covered and the bank has taken necessary reserves to protect the interest of the stakeholders. The bank expects substantial payments against these loans in the next two quarters and improve the bottom line of the bank.Documents evidencing the future sale of the major real estate portfolio stands executed with established timelines. The realization of capital gains in PIB’s, along with regularization of real estate portfolio, will not only ensure substantial profits during 2020, but, will go a long way in improving the capital position of the Bank.The Bank has a positive outlook for 2020 as its Retail & Consumer Banking businesses are doing well and continue to form part of the future strategy, with additional focus on mortgage and auto finance, SME business and digital footprint.Silkbank Limited is owned by an international consortium led by senior banker Mr. Shaukat Tarin.