SilkBank declares operating profit of Rs 2.719bn for Jan-Sep 2018

Karachi: The Board of Directors of Silkbank Limited in their meeting held on October 25, 2018, declared an Operating Profit of Rs2.719billion, with a Profit after Tax of Rs.1.235billion for the nine months ended September 30, 2018.

The Profit Before Tax for this period reflected an impressive increase of70% versus the same period last year.

Net interest income grew by Rs. 913million for the nine months ended September 302018, reflecting a growth of23%, whereas, Non-Funded Income for the same period reflected a growth of 42% over the corresponding period last year.

Silkbank’s Gross advances registered an increase of Rs.14.29billion, higher by 16% in comparison with year-end 2017 figures. Deposits also increased by Rs. 12 billion versus December 2017, taking the total deposits base to Rs.122.33 billion, reflecting greater customer confidence in the Bank.

CASA ratio improved from 61.46% in December 2017 to 66.76% inSeptember2018, favorably impacting the cost of deposits.

The Board of Silkbank Limited also approved the alignment of the Bank’s share capital with its equity, through reduction of shares. The share reduction process shall positively affect the book value per share (BPS), earnings per share (EPS) and dividend per share (DPS) ratios of the Bank.

The resulting paid-up share capital will more closely reflect the value of the Bank’s underlying assets, consequently increasing shareholder’s value by making the capital structure more efficient. Silkbank is fully compliant with both the Minimum Capital Requirement (MCR) and Capital Adequacy Ratios (CAR) of the State Bank of Pakistan.