Silk­bank posts Rs 1.7b loss in 2015

The Pak Banker - - FRONT PAGE -

KARACHI: Silk­bank posted a net loss of Rs1.7 bil­lion in 2015 as op­posed to a net profit of Rs86.8 mil­lion in the pre­ced­ing year. A stock no­tice re­ported the ba­sic loss per share of Silk­bank at Rs0.58 as op­posed to the earn­ings per share of Rs0.03. Net in­ter­est in­come af­ter pro­vi­sions of the bank amounted to Rs2.3 bil­lion in 2015, down 23.2 per­cent from a year ago, hurt­ing the bot­tom line.

In con­trast, the year-on-year in­crease in non-in­ter­est in­come clocked up at 10.1 per­cent. Non-in­ter­est in­come equalled Rs1.9 bil­lion, as net gains on the sale of se­cu­ri­ties rose 87.8 per­cent to Rs650.9 mil­lion over the year. The board of di­rec­tors did not an­nounce a cash div­i­dend or any other en­ti­tle­ment for the year. Heav­ier pro­vi­sions against non-per­form­ing loans and ad­vances hurt earn­ings of the bank last year. They amounted to Rs589.3 mil­lion, up a whop­ping 7.4 times from a year ago. Silk­bank strug­gled to meet cap­i­tal ad­e­quacy re­quire­ments in the re­cent past. Fol­low­ing an un­der­writ­ing ar­range­ment with the Arif Habib Group as part of its cap­i­tal-rais­ing ini­tia­tive through a Rs10-bil­lion rights is­sue, the bank is­sued over 6.4 bil­lion right shares at Rs1.56 per share.

In Au­gust 2015, Arif Habib Cor­po­ra­tion ac­quired 28.23 per­cent share­hold­ing in Silk­bank. In ad­di­tion, the Gourmet Group also ac­quired a 12 per­cent stake, thus be­com­ing 'spon­sor share­hold­ers' of the bank. At the end of last year, In­ter­na­tional Fi­nance Cor­po­ra­tion held 26.3 per­cent shares in Silk­bank while Shaukat Tarin, No­mura Euro­pean In­vest­ment and Bank Mus­cat held 22.5 per­cent, 13.3 per­cent and 11.8 per­cent, re­spec­tively. As many as 427,000 shares of Silk­bank were traded on the Pak­istan Stock Ex­change on Mon­day. Its share price recorded a drop of 2.6 per­cent to close at Rs1.50.

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