Soneri Bank’s Profits Drop by 41.1% in Q1 2020

Soneri bank announced its financial results for the first quarter ended 31 March 2020.

The Bank posted a profit after tax (PAT) of Rs. 407.46 million for the quarter ended March 2020, declining by 41.06% as compared to Rs 691.37 million in the same period last year. The Bank’s EPS was recorded at Re. 0.3696 per share for the current reporting quarter, as compared to Re. 0.6271 for the comparative prior period.

However, profit before provisions and taxation was reported at Rs. 1.01 billion for Q1 2020, indicating an impressive growth of 78% from the level of Rs. 571 million for the corresponding prior period.

Net Interest Income (NII) was reported at Rs. 2.109 billion for Q1 2020, improving by 6% from the level of Rs. 1.99 billion for the corresponding prior period. The growth was primarily due to improved volumes as well as spreads.

Non-Interest Income was reported at Rs. 1.16 billion for Q12020, improving impressively by 76% from Rs. 665 million for the corresponding prior period. The growth was due to an increase in foreign exchange earnings and gains earned on securities which improved by Rs. 251 million and  Rs. 247 million respectively.

Growth in expenses was recorded at 8%, as compared to the prior year, with Non-markup expenses reported at Rs. 2.26 billion for the quarter ended 31 March 2020.

Net provisions and write-offs were reported at Rs. 333 million for the quarter as against a net reversal of Rs. 577 million in the corresponding prior period, mainly due to reversal in excess of Rs. 700 million in Q1 2019, and additional impairment charge of Rs. 178 million in Q1 2020 on the Bank’s equity portfolio, resulting from a constant decline in major stock prices.

The Bank’s net advances portfolio stood at Rs 196.785 billion as of 31 March 2020, 4% lower than the year-end 2019 level. Non-performing loans decreased from Rs 10.903 billion on 31 December 2019 to Rs 10.779 billion on 31 March 2020.

Net investments witnessed a volumetric increase of Rs. 7.676 billion or 4 percent from the year-end balance of Rs. 177.05 billion, ending at Rs. 184.73 billion as of 31 March 2020.

Deposits registered a marginal decline of Rs. 440 million or 0.15 percent when compared to 31 December 2019, ending at Rs. 301.643 billion as of 31 March 2020.

The Board of Directors recognized and appreciated the efforts of the management in delivering steady performance amidst a challenging environment. In particular, the Board appreciated the services of the Bank’s front line staff, who have helped ensure continuity of services for our customers during the uncertain times following the COVID-19 outbreak.