Soneri Bank Limited has announced its financial results for the year ended 31 December 2019.
The Bank posted a profit after tax (PAT) of Rs. 1.906 billion in the year 2019, showing an increase of 6.86% compared to Rs. 1.784 billion recorded in 2018.
The results have consequently improved the Bank’s EPS to Rs. 1.72 per share in 2019 from Rs. 1.61 per share in 2018. The Board of Directors has also announced cash dividend for the year ended 31 December 2019 @ 10 percent i.e. Rs.1.00 per share.
Net Interest Income (NII) for the year was reported at Rs. 7.92 billion, improving by 14% year on year. The growth in net interest income was primarily due to improved volumes as well as spreads.
Non-Interest Income ended lower than the prior period, mainly due to the impact of losses incurred on the Capital markets portfolio, while fee and commission earnings, dividend income and foreign exchange income all improved substantially by 9.89%, 28.30%, and 15.46% respectively.
Growth in expenses was restricted at 10.16%, as compared to the prior year; with non-mark-up expenses reported at Rs. 8.129 billion for the year ended 31 December 2019. The Bank’s net advances portfolio grew by 9.88% to Rs. 204,901 million over the year.
Nonperforming loans decreased by 4% from Rs. 11.357 billion on 31 December 2018 to Rs. 10.903 billion on 31 December 2019. As a result, the Bank’s infection ratio has improved from 5.83% on 31 December 2018 to 5.13% on 31 December 2019, moreover, the specific provision coverage ended at 69.46% on 31 December 2019.
Net investments witnessed a significant volumetric increase of Rs. 30.411 billion or 20.74% from the year-end balance of Rs.146,645 million, ended at Rs. 177,056 million as at 31 December 2019.
Deposits also registered a healthy growth of Rs. 39.704 billion or 15.13 percent over the year, and were reported at Rs. 302.083 billion as at 31 December 2019. The Bank remains adequately capitalized, with CAR of 15.79% at year-end.
Soneri Bank appoints a new President/CEO
Muhtashim Ashai has been named the new president and CEO of Soneri Bank.
The Board of Directors of Soneri Bank Limited, in their meeting held on February 13, 2020, has approved the appointment of Mr. Mustashim Ahmad Ashai as President and Chief Executive Officer.
In a notification to the PSX, the bank announced that he will assume charge on April 1, 2020, in place of Mr. Mohammad Aftab Manzoor whose employment contract shall be maturing on March 31, 2020.
The appointment of the new CEO shall be subject to clearance of the State Bank of Pakistan under Fit and Proper Test Requirements.
Mr. Muhtashim Ashai has been working in the Corporate and Investment Banking arena for more than 23 years. He graduated with a BS degree from UET and completed his MBA from LUMS, followed by the International Management Program at MC Gill University in Montreal. Ashai was a senior Executive Vice President and the head of Corporate Finance at MCB Bank.
He started his career in a local investment bank and then joined a foreign commercial bank before moving to MCB Bank Limited in January 2008. He has worked in Pakistan, Singapore, Japan and China.