Soneri Bank Reports Rs2.94 Billion Profit After Tax for Nine Months of 2026

Soneri Bank Limited reported a profit before tax of Rs6.027 billion for the nine months ended September 30, 2026. Profit after tax reached Rs2.941 billion, according to the bank’s financial results.

The Board of Directors approved the financial statements at its 218th meeting in Karachi on October 26.

Profit before tax declined from Rs9.604 billion in the corresponding period last year. Profit after tax also fell from Rs3.304 billion. Earnings per share stood at Rs2.6680, compared with Rs2.9968 a year earlier.

The bank said it maintained its profitability and expanded its business despite economic pressures. These included elevated inflation, energy tariff adjustments and geopolitical uncertainty.

Non-Interest Income Supports Revenue

Soneri Bank reported non-interest income of Rs7.596 billion for the period. This represented a 16.54% increase from Rs6.518 billion a year earlier.

Foreign exchange income contributed an additional Rs813 million. Fee and commission income also increased by Rs143 million.

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However, net interest income declined by 16.46%, or Rs3.454 billion, due to pressure on margins. The bank said stronger non-interest income helped offset part of this decline.

Investment income fell to Rs42.893 billion from Rs46.189 billion in the corresponding period last year. Average investment yields declined to 11.34% from 13.02%.

The bank’s investment portfolio nevertheless expanded to Rs517.819 billion at the end of September. That represented an increase of 8.05% from Rs479.247 billion a year earlier.

Advances Grow as Deposit Base Strengthens

Soneri Bank expanded its lending activity during the period. Average net advances increased to Rs223.666 billion from Rs195.572 billion.

Income from advances rose 8.17% to Rs18.628 billion, compared with Rs17.221 billion a year earlier. However, net yields on advances declined to 11.14% from 11.78%.

The bank’s deposit base reached Rs736.484 billion at September-end. This marked growth of 6.88% from Rs689.106 billion at the end of December 2025.

The deposit mix also improved. The current and savings accounts (CASA) ratio increased to 86.33%, compared with 81.86% at the end of 2025.

Current accounts accounted for 33.04% of deposits. Average current account volumes grew by 12.06%.

These changes helped reduce the cost of deposits to 6.86% from 7.17% in the comparable period last year. The bank’s overall cost of funds also fell to 7.36% from 7.83%.

Borrowings stood at Rs65.749 billion on September 30, 2026, compared with Rs61.644 billion at the end of 2025. The bank reported overall borrowing costs of 10.38%, down from 10.57% in the comparative period.

Branch Expansion Drives Operating Costs Higher

Non-markup expenses rose 15.67% to Rs20.616 billion from Rs17.824 billion in the same period last year.

The bank attributed the increase partly to inflation and its branch expansion programme. It opened 73 branches between September 2025 and September 2026, bringing its total network to 691 branches.

Management said it would continue to control costs and keep spending within approved budgets. The bank also expects cost pressures to ease as inflation moderates.

Asset Quality Improves

Soneri Bank reported an improvement in its loan portfolio. Its non-performing loan (NPL) ratio fell to 1.93% at September-end, down from 3.41% on December 31, 2025.

The bank recovered and reclassified Rs525 million into regular loans. It also charged off Rs739 million in fully provisioned non-performing loans to memorandum accounts.

These developments contributed to a net reversal of Rs1.514 billion in credit loss allowances. The bank had recorded a charge of Rs77 million in the corresponding period last year.

Its loan loss coverage ratio increased to 108.13%, compared with 96.77% at the end of 2025. The bank said it would continue monitoring credit risks and maintaining adequate coverage.

Capital and Liquidity Ratios Remain Above Regulatory Requirements

Soneri Bank reported a capital adequacy ratio of 12.93% and a leverage ratio of 3.14% as of September 30, 2026.

Its liquidity coverage ratio stood at 189.87%. The net stable funding ratio reached 176.31%.

According to the bank, both liquidity ratios remained comfortably above regulatory requirements.

PACRA Upgrades Soneri Bank’s Long-Term Rating to AA

The Pakistan Credit Rating Agency (PACRA) upgraded Soneri Bank’s long-term entity rating to AA from AA-. It also reaffirmed the bank’s short-term rating at A1+ with a Stable Outlook.

PACRA upgraded the rating of the bank’s Rs4 billion unsecured, subordinated and listed Term Finance Certificates (TFC-3) to AA from A+.

The agency also raised the rating of the bank’s Rs4 billion unsecured, subordinated, rated, listed, perpetual and non-cumulative TFC issue to A+ from A. Both instruments carry a Stable Outlook.

The bank said the upgrades reflected its financial strength, corporate governance, risk management and business performance.

Soneri Bank’s latest results show growth in deposits, advances and its branch network. At the same time, lower profits and net interest income highlight continuing pressure on earnings.