Soneri Bank posts Rs1.15bn Q1 profit

KARACHI: Soneri Bank Ltd reported a profit after tax of Rs1.15 billion for the quarter ended March 31, 2025, down 35 per cent from a year earlier, as higher taxation on the banking sector weighed on earnings despite robust top-line growth.

Profit before tax stood at Rs3.34 billion, down from Rs3.55 billion in the same period last year. The earnings per share dropped to Rs1.04 from Rs1.6, reflecting the impact of the Income Tax (Amendment Ordinance), 2024, which pushed the effective tax rate up to 65.6 per cent from 50.5 per cent. Net interest income surged 24.6 per cent year-on-year (YoY) to Rs7.29 billion, supported by higher volumes. However, non-interest income slipped slightly to Rs1.56 billion from Rs1.6 billion, as lower foreign exchange income offset gains in fees and commissions. Operating expenses rose 18.9 per cent to Rs5.22 billion, driven by inflationary pressures and branch network expansion. The bank emphasized that prudent cost control helped limit the rise despite its ongoing growth strategy. As of March-end, Soneri Bank operated 551 branches, up from 544 at year-end 2024.

Deposits rose 5.2 per cent to Rs571.2 billion, while the current and savings account (CASA) ratio improved to 83.1 per cent from 81.9 per cent. Net advances fell 18.7 per cent to Rs197.9 billion, while net investments climbed 21 per cent to Rs465 billion.

Asset quality saw a modest deterioration, with the non-performing loans ratio increasing to 3.95 per cent from 3.13 per cent at year-end. Specific coverage stood at 89.6 per cent, while overall coverage, including IFRS 9 expected credit losses, improved slightly to 103.9 per cent. The bank’s capital adequacy ratio remained solid at 15.25 per cent. Soneri said it remains focused on a customer-centric growth strategy and maximising shareholder value amid a challenging economic and regulatory environment.