Silkbank records sharp rise in profitability
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.