Silkbank posts Rs3.4bln profit

KARACHI: Silkbank Limited has declared an operating profit of Rs3.4 billion for the nine months ended September 30, 2020, a statement said on Monday.

The strong performance continues despite the economic slowdown from the shutdown due to COVID-19 and as the bank continues to restructure for profitability, growth and improved controls, it added.

The bank declared a pre-tax profit of Rs601 million for the nine months ended September 30, 2020, which is Rs4.6 billion better than the corresponding period of the last year.

The bank’s net interest income grew Rs416 million, reflecting a growth of 27 percent over the corresponding period last year. Non-funded income reflected a growth of Rs5.2 billion and expenses were lower by 6 percent over the corresponding period.

Deposits increased Rs5 billion, compared with December 2019, taking the total deposit base to Rs154 billion, reflecting continued customer confidence in the bank. In line with the bank’s strategy, total gross loans reduced to Rs108 billion on September 30, 2020 from Rs112 billion in December 2019.

Silkbank also continued to maintain strong growth in its consumer lending and card divisions, which contribute significantly to its earnings’ momentum.

Silkbank has further obtained the approval of the State Bank of Pakistan (SBP) for creation of Shariah-compliant REIT(s) for resolution of major NPL portfolio and disposal of non-banking assets (NBA) of the bank. The bank expects substantial upside as a result of the same, it added.