Silk­bank records sharp rise in prof­itabil­ity

Pakistan Observer - - FRONT PAGE - STAFF RE­PORTER

KARACHI—Silk­bank Lim­ited has de­clared an Op­er­at­ing Profit of Rs1.32 bil­lion for the nine months ended Septem­ber, 30, 2016. The Bank’s Profit be­fore Tax of Rs783 mil­lion re­flects a no­table growth of 772 per cent com­pared to the same pe­riod last year.

The steady im­prove­ment in prof­itabil­ity is the re­sult of im­ple­men­ta­tion of a well for­mu­lated busi­ness strat­egy. The on­go­ing fo­cus is two-fold; on the rev­enue side, growth is led by con­tri­bu­tions from high yield­ing con­sumer as­sets; and on the cost side, a steady rise in CASA is bring­ing the cost of funds down – ev­i­dent from the de­posit mix which stands at 61 per cent of CASA de­posits vs. 58 per cent for the same pe­riod last year.

Thus Net mark-up in­come of the Bank grew sig­nif­i­cantly by 43 per cent com­pared to the nine months ended Septem­ber 30, 2015, which sub­stan­ti­ates Bank’s op­er­a­tional ef­fi­ciency. The Bank’s to­tal as­sets base grew by 16 per cent as com­pared to the po­si­tion as at Septem­ber 30, 2015 due to the in­crease in in­vest­ments by 23 per cent and net ad­vances by 11 per cent.

De­posits have in­creased by Rs6.3 bil­lion from Septem­ber 2015 tak­ing the to­tal de­posits to Rs85.96 bil­lion - re­flect­ing con­tin­ued de­pos­i­tors’ con­fi­dence in the Bank.

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