Karachi November 30 2021: The State Bank of Pakistan ("SBP") has granted approval to Saudi National Bank ("SNB") and its Advisors, DD team, to undertake Due-diligence ("DD") of SBL as per information shared by the bank at Pakistan Stock Exchange.
The stock gains 3.14 percent in today's trading session at Pakistan Stock Exchange.
The approval of central bank is subject to compliance with applicable laws, rules and regulations.
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The Bank has recorded a Profit Before Tax (PBT) of Rs. 601 million during the third quarter under review resulting in YTD PBT of Rs. 804 million and PAT of Rs. 478 million respectively despite taking a major hit one of the big corporates’ loss for the nine months’ ended September 30, 2021. This turn-around of bottom line within such short time span depicts managements’ effective business strategies and decision making under the guidance of the Board. Net markup income (NIM) for the nine months’ period under review increased by 12% over similar period last year.
Overall revenue earned during the period under review increased by 9.26% over similar period last year primarily due to higher NIM and higher fee and commission income generated through trade activities & credit related fees.
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Operating expenses increased by 13% from similar period last year which is in line with overall inflation & resumption of normal business after Covid-19 lockdowns. The revenue growth coupled with control over operating expenses translated into operating profit of Rs. 1,863 million for the nine months’ period under review. All the business segments have posted robust performance and are expected to continue the growth momentum.
The management is focused on strategically sizing the balance sheet with appropriate mix of earning assets vis-à-vis credit risk, low cost borrowings and deposits. This has resulted in increase in the assets base of the Bank from PKR 158.99bn as at December 31, 2020 to PKR 203.48bn at September 30, 2021. Advances and Investments witnessed increase of PKR 12.88bln and 25.93bln, respectively over Dec’20 position. On the liabilities side, the Bank mobilized low cost & medium to small ticket deposits and managed to maintain overall deposit cost at 4.81% in line with the plan and closed its deposits book at PKR 86.76bln depicting an increase of 11% over Dec’20 position.