Silkbank declares operating profit of Rs499m

KARACHI: The board of directors of Silkbank Limited on Wednesday approved the annual results of the bank for the year ended December 31, 2014. The bank declared an operating profit of Rs499 million in 2014 against operating loss of Rs894.6 million last year.
While the total earnings of the bank increased by 49 percent, the net markup went up by 60 percent over the last year. Despite the significant increase in revenue and profitability of the bank, the administrative expenses were kept under tight control and reflected an increase of only 6.9 percent over last year, which was even lower than the average inflation rate for 2014. Silkbank was also successful in reducing its non-performing loans portfolio by Rs1.6 billion from the previous year-end figures.
The deposit mix showed a positive improvement with CASA deposits increasing to 57.4 percent from 54.9 percent in the previous year.
Also, the bank’s balance sheet spread improved from 2.24 percent in 2013 to 3.42 percent in 2014.
It is pertinent to mention that Silkbank has already announced Right Shares of Rs10 billion, which will take the total capital of the Bank in excess of Rs16 billion.
The bank has already received Rs2 billion in December 2014 as advance subscription against Right Shares. With enhanced capital, Silkbank’s business momentum is expected to further accelerate in 2015 and beyond.
It may be noted that Silkbank is backed by strong international sponsors, which include IFC (World Bank Group), Nomura European Investments, Bank Muscat and Sinthos Capital led by Shaukat Tarin.