The annual audited financial statements of Soneri Bank Limited for the fiscal year ending December 31, 2025, received formal approval from shareholders during the institutions 34th Annual General Meeting held in Lahore. The session, which also accommodated participants via video-link, was led by Chairman of the Board Amin A. Feerasta and President and CEO Muhtashim Ahmad Ashai. The meeting served as a platform to review a year characterized by stable and persistent performance across all business segments, even as the broader financial landscape contended with a cycle of declining interest rates. The bank reported a profit before tax of Rs 11.606 billion and a profit after tax of Rs 4.558 billion for the year 2025, compared to Rs 12.638 billion and Rs 5.901 billion respectively in the prior year.
A significant point of discussion during the assembly was the impact of taxation on the banks bottom line. Earnings per share for the current year were recorded at Rs 4.1341, a decrease from the Rs 5.3528 reported in 2024. This shift was primarily driven by additional taxation on banking companies relating to prior years, which pushed the effective tax rate to 60.7 percent from the previous 53.3 percent. Despite these fiscal pressures, the board recommended and the shareholders approved a final cash dividend of 15 percent, amounting to Rs 1.50 per share. This move underscores the banks commitment to providing consistent returns to its investors while navigating a complex regulatory and fiscal environment.
From an operational standpoint, Soneri Bank demonstrated robust growth in its core revenue streams. Net interest income climbed to Rs 27.042 billion, marking an 8.39 percent improvement over the previous year. This growth was fueled by higher average business volumes which successfully offset the compression in spreads. Furthermore, non-interest income saw a substantial year-on-year increase of 20.40 percent, reaching Rs 8.133 billion. This was largely supported by a 12.94 percent rise in fee and commission income. Collectively, the banks overall revenue improved by 10.96 percent, indicating that the institutional strategy of diversifying income sources is yielding tangible results.
The banks commitment to physical expansion reached a historic milestone in 2025. In a single year, Soneri Bank opened 126 new branches, the highest number in its history, bringing its total network to 670 operational locations. While this aggressive expansion contributed to a 24.07 percent rise in non-markup expenses, which totaled Rs 24.224 billion, the management clarified that these expenditures align with long-term growth objectives and market penetration strategies. The bank remains focused on prudent cost control and expects further progress in expenditure management as inflation begins to stabilize in the medium term.
On the balance sheet side, Soneri Bank achieved an impressive 26.87 percent growth in overall deposits, closing the year at Rs 689.106 billion. A strategic emphasis on the CASA mix and rationalizing funding costs led to a significant decrease in the cost of deposits, which fell to 7.10 percent from 13.13 percent the previous year. While the net advances portfolio adjusted to Rs 214.324 billion, net investments rose by nearly 25 percent to reach Rs 479.247 billion. With a Capital Adequacy Ratio of 14.89 percent and liquidity ratios comfortably exceeding regulatory requirements, the bank remains well-positioned to continue its trajectory of providing tailored financial solutions to its evolving customer base.
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