Silkbank declares profit of Rs1.235bln

KARACHI: Silkbank Limited has declared an operating profit of Rs2.718 billion, with a net profit Rs1.235 billion for the nine months period ended September 30, 2018.

The profit before tax for this period reflected an impressive increase of 70 percent versus the same period last year, a statement issued by the bank said.

Net interest income grew by Rs913 million for the nine months ended September 30, 2018, reflecting a growth of 23 percent, whereas, non-funded income for the same period reflected a growth of 42 percent over the corresponding period last year.

Silkbank’s gross advances registered an increase of Rs14.29 billion, higher by 16 percent in comparison with year-end 2017 figures. Deposits also increased by Rs12 billion versus December 2017, taking the total deposits base to Rs122.33 billion, which reflects greater customer confidence in the bank.

CASA ratio improved from 61.46 percent in December 2017 to 66.76 percent in September 2018, favourably impacting cost of deposits, the statement said.

The Board of Silkbank Limited also approved the alignment of the bank’s share capital with its equity, through reduction of shares. The share reduction process should positively affect the book value per share (BPS), earnings per share (EPS) and dividend per share (DPS) ratios of the bank.