Soneri Bank Limited reported earnings per share of PKR 4.13 in CY25, down 23% from PKR 5.35 in CY24. This translates into profit after tax of PKR 4.6 Bn compared to PKR 5.9 Bn in SPLY. The bank declared a dividend of PKR 1.5 per share in CY25, down 50% from PKR 3.0 in CY24.
Total income in CY25 reached PKR 35.2 Bn against PKR 31.7 Bn in CY24, an increase of 11%. This was primarily driven by a 8% increase in net mark-up income from PKR 25.0 Bn in CY24 to PKR 27.0 Bn in CY25. The bank saw its total deposits rise from PKR 543 Bn at the end of CY24 to PKR 689 Bn at the end of CY25, an increase of 27%. The CASA ratio now stands at 82%. Investments stood at PKR 479 Bn at the end of CY25, up 25% from PKR 384 Bn at the end of CY24.
Management highlighted that out of its PIB portfolio, PKR 24 Bn is in fixed rate instruments with weighted average yield of 11.95% and a duration of 2.28 years while PKR 332 Bn is in variable rate instruments yielding 11.71%. The bank’s cost to income ratio for CY25 stood at 67% compared to 60.5% in CY24.
This has been the result of branch network expansion; it is expected that this will decline as the rate of branch network expansion will slow down in the future. Capital Adequacy Ratio stood at 14.9% at end Dec-25, down from 17.7% at the end of CY24. The bank opened a total of 126 branches in CY25, bringing the total to 670, it aims to open 80 more in CY26 to reach a total of 750. This is part of a larger expansion plan to reach 1,000 branches by end CY29.
Moving forward, the management believes that the policy rate has bottomed out and it is possible that SBP will hike the rate in its upcoming MPC meeting, however this will depend on global commodity prices in the coming days.
Important Disclosures
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