KARACHI: Soneri Bank Ltd reported higher first-quarter earnings, supported by a surge in non-interest income that offset pressure on margins from a lower interest rate environment.
Profit after tax rose to Rs1.34 billion for the quarter ended March 31, 2026, from Rs1.15 billion a year earlier, lifting earnings per share to Rs1.21. Profit before tax, however, declined to Rs2.8 billion from Rs3.34 billion.
Total revenue remained broadly stable at Rs8.8 billion. Net interest income fell nearly 18% to Rs5.98 billion due to margin compression, while non-interest income jumped about 80 per cent to Rs2.82 billion, driven by foreign exchange gains, commissions and capital market activity.
The bank’s investment portfolio increased to Rs492.7 billion, although investment income declined amid lower yields following policy rate cuts. Income from advances also fell, reflecting repricing of loans, despite a rise in average lending volumes.
Deposits stood at Rs685.1 billion, with improvements in the current and savings account mix helping reduce the cost of funds. The CASA ratio rose to 86.99 per cent, while overall funding costs declined.
Non-mark-up expenses increased 28 per cent to Rs6.69 billion, largely due to branch expansion, taking the network to 674 branches. Asset quality improved, with the non-performing loan ratio declining to 2.93 per cent from 3.41 per cent at the end of December, supported by recoveries and a reversal in credit loss provisions.
The bank’s capital adequacy ratio stood at 13.98 per cent, with liquidity indicators remaining well above regulatory requirements. Its credit ratings were reaffirmed at ‘AA-’ for the long term and ‘A1+’ for the short term with a stable outlook.
