Profit after tax of Silkbank increases

Silkbank has posted Rs 208.072 million as profit after tax in the half year period ended June 30, 2010 as compared to after tax loss of Rs 1,108.058 million recorded in the corresponding period in 2009. The board of directors of the bank in its meeting held here on Wednesday declared the bank's earning per share at Re 0.11 in the period under review against per share loss of Re 1.00 in the same period a year back.
On quarterly basis, the bank made a significant turnaround by declaring a profit after tax of Rs 618 million for the second quarter ending June 30, 2010 against after tax loss of Rs 636.490 million recorded in the same quarter last year. The bank reflected a healthy increase in advances of Rs 9.3 billion taking the total advances to Rs 50 billion. This reflects a 23 percent growth over the December 2009 figures, whereas the industry grew around 2 percent for the same period, a statement issued said.
The bank also achieved an appreciable growth in deposits of Rs 4.4 billion during this period. The bank recorded a phenomenal increase of 205 percent in Net Interest Income and Non Interest Income increased by an impressive 142 percent compared to the same period last year. Silkbank has met the SBP Minimum Capital Requirement of Rs 6 billion taking the Capital Adequacy Ratio to over 10 percent. As a result of the impressive performance the Short Term Rating of the Bank has been upgraded to A 2 (A Two). The rating has been placed under "Rating Watch/Positive Status."-PR