KARACHI: Soneri Bank Limited has announced its financial results for the year ended December 31, 2024, reflecting consistent growth despite economic challenges. The results were approved during the Bank’s 209th Board of Directors meeting held in Karachi and chaired by Amin A. Feerasta.
The Bank reported a Profit Before Tax (PBT) of Rs 12.638 billion and a Profit After Tax (PAT) of Rs 5.901 billion, compared to Rs 12.357 billion and Rs 6.075 billion respectively in 2023. This represents a 2.27 percent increase in PBT, despite a declining interest rate environment and margin pressures. However, the PAT saw a 2.87 percent decline, attributed to additional taxation on banking companies introduced via the Income Tax (Amendment Ordinance), 2024.
The Earnings Per Share (EPS) for the year stood at Rs 5.3528, slightly lower than Rs 5.5108 in 2023.
Strong Financial Performance
Soneri Bank’s Net Interest Income grew by 9.62 percent, reaching Rs 24,948 million, up from Rs 22,759 million in 2023. This increase was driven by improved volumes and spreads. Additionally, the Bank’s non-interest income rose to Rs 6,755 million, marking a 4.58 percent increase from Rs 6,459 million in 2023. This growth was supported by a 36.91 percent year-on-year increase in trade volumes.
Meanwhile, non-markup expenses stood at Rs 19,525 million, up 26.20 percent from Rs 15,471 million in the previous year. Despite inflationary pressures and an ongoing branch expansion drive, cost control measures helped contain the rise in expenses.
Expansion and Growth
Soneri Bank expanded its network significantly, increasing its branch count from 443 branches in December 2023 to 544 branches by the end of 2024, adding 101 new branches nationwide.
The Bank’s total deposits grew by 4.88 percent to Rs 543,146 million, compared to Rs 518,009 million in 2023. The CASA mix improved to 82.56 percent, up from 79.60 percent.
The net advances portfolio increased by 18.28 percent, reaching Rs 243,366 million, while net investments rose by 23.83 percent, amounting to Rs 384,306 million by the end of 2024.
Asset Quality and Capital Strength
The Bank significantly reduced its non-performing loans (NPL) ratio to 3.13 percent, compared to 4.90 percent in 2023, due to strong recovery efforts and the implementation of the SBP’s charge-off policy. The specific coverage ratio improved to 90.02 percent (from 80.01 percent), while overall coverage, including Expected Credit Loss provision under IFRS 9, stood at 102.90 percent.
Soneri Bank remains well-capitalized with a Capital Adequacy Ratio (CAR) of 17.69 percent. The Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) were reported at 176.91 percent and 157.15 percent, respectively, well above regulatory requirements.
Commitment to Growth
The Bank remains focused on enhancing shareholder value through a customer-centric business strategy that serves the needs of its diverse clientele across multiple business segments. The leadership remains optimistic about sustained growth and further expansion in the coming years.
