The Board of Directors of Silkbank announced a profit before tax of Rs 157 million in the first quarter of 2011. President and CEO Silkbank, Azmat Tarin presented the accounts in the meeting. This was a complete turnaround for the Bank as a loss of Rs 407 million was registered in the same period last year. Silkbank also made substantial gains in the Gross Revenue numbers for Q1 2011 registering a total of Rs 719 million vs Rs 290 million for Q1 2010, reflecting a growth of 148 percent for the period.
In comparison, Silkbank's Total Expenses increased by only 19.6 percent for Q1 2011 against the same period last year. Total deposits increased by Rs 9.6 billion in Q1 2011, 19.7 percent higher over the same period last year. The Bank successfully launched current account products targeted towards Business persons and Salaried Employees which helped in reducing the cost of funds. Gross Advances also reflected a 22.5 percent growth over the corresponding period of last year, increasing by Rs 9.97 billion. As a conscious strategy the bank is changing the advances mix by moving into higher margin Consumer and SME markets which continues to improve its balance sheet spread. A noteworthy reduction in the non-performing loans was achieved by Silkbank in Q1 2011. This lead to a reduction in the ratio of non-performing loans to 21.4 percent from 26.9 percent as at March 31, 2010.
The Board of Silkbank appreciated the ongoing contribution of Shaukat Tarin as Advisor to the Chairman of the Board. Tarin continues to be a principal shareholder of Silkbank along with Nomura Investments, Bank Muscat and International Finance Corporation (IFC).-PR
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