Silkbank Board in its meeting held on Wednesday approved the annual accounts for the year ending 2010. Silkbank has made a remarkable turnaround by more than doubling its revenue numbers. Total revenue in 2010 increased from Rs 719 million to Rs 1.524 billion, a growth of 112 percent.
This achievement was attributed to the launch of new products, increase in business volumes and growth in non-fund based income. Cost of funds recorded a reduction and the overall yield on earning advances increased, resulting in an improved net balance sheet spread during the year. Deposits grew from Rs 49.6 billion in 2009 to Rs 55.7 billion in 2010.
Current and Saving Accounts (CASA) increased by Rs 5.5 billion (90% of the total growth in deposits). Performing advances increased from Rs 28.7 billion to Rs 40.5 billion recording a growth of 41%. The Bank made a significant reduction in net credit losses which decreased from Rs 2.3 billion in 2009 to Rs 228 million in 2010 as most of the credit losses have already been accounted for in the previous years.
The Bank is now actively engaged with new investors for subscription to the unpaid balance of the rights issue which it expects to successfully accomplish by the end of the first Quarter 2011 to meet the SBP's Minimum Capital Requirement (MCR). The Bank successfully maintained its short and long-term Ratings.-PR
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