Rs.499 million Operating Profit - Silkbank
KARACHI: The Board of Directors of Silkbank Limited, in their meeting held on Wednesday announced the annual results of the Bank for the year end - December 31, 2014.
The Bank declared an Operating Profit of Rs499 million in 2014 vs. an operating loss of Rs. 894.6 million reflected in the previous year. The total earnings of Silkbank increased by 49% over last year, with net mark-up income higher by 60% over the previous 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% 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 Rs. 1.6 billion from the previous year-end figures. Silkbank’s deposit mix showed a positive improvement with CASA deposits increasing to 57.4% from 54.9% in the previous year.
Also, the Bank’s balance sheet spread improved from 2.24% in 2013 to 3.42% in 2014.
It is pertinent to mention that Silkbank has already announced Right Shares of Rs. 10 billion, which will take the total capital of the Bank in excess of Rs. 16 billion. Silkbank has already received Rs. 2 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.
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