Soneri Bank Limited has reported a 30.7 percent year-on-year decline in its profit after tax for the nine months ended September 30, 2025, reflecting the impact of rising costs and higher taxation despite an increase in total income. The bank’s profit after tax stood at Rs3.30 billion compared to Rs4.77 billion recorded in the same period last year.
The earnings per share (EPS) also decreased to Rs2.99 from Rs4.32 during the same period, indicating margin pressures in a challenging macroeconomic and regulatory environment.
According to the financial results disclosed to Pakistan Stock Exchange (PSX), Soneri Bank’s total income for the nine-month period rose 14.4 percent year-on-year to Rs27.52 billion. This growth was driven by a notable increase in non-mark-up income and improvement in net interest margins.
Net mark-up or interest income grew 11.5 percent to Rs20.99 billion. The bank’s mark-up earned declined 26.7 percent to Rs64.39 billion, but this was offset by a sharper drop of 37.1 percent in interest expenses, which fell to Rs43.39 billion.
Non-mark-up or interest income increased significantly by 24.8 percent to Rs6.52 billion, largely due to a rebound in gains on securities, which surged by 519.2 percent to Rs1.55 billion. Fee and commission income grew by 14.3 percent, while dividend income increased by 24.2 percent. However, foreign exchange income fell 30.3 percent to Rs1.13 billion, partially offsetting these gains.
On the cost side, operating expenses jumped 21 percent year-on-year to Rs17.28 billion, while total non-mark-up expenses rose 22.8 percent to Rs17.83 billion. The increase reflects higher administrative costs and other charges, with the latter climbing sharply to Rs358.64 million from Rs33.06 million in the same period last year.
Credit loss allowances and write-offs stood at Rs77.97 million, compared to a reversal of Rs192.04 million in the previous year. As a result, the bank’s profit before tax slightly decreased by 1.3 percent to Rs9.60 billion from Rs9.73 billion in the same period last year.
A major factor impacting the bottom line was taxation, which rose 26.9 percent year-on-year to Rs6.30 billion. This increase in tax expenses weighed heavily on the bank’s net profitability, resulting in the Rs3.30 billion PAT figure for the period under review.
The financial statement also revealed a modest rise in other income streams, contributing to overall revenue stability despite a volatile economic backdrop. The significant increase in gains on securities and stable net interest margins provided support, but the rising cost base and higher tax burden eroded overall profitability.
Market analysts note that Soneri Bank’s performance reflects a broader trend in Pakistan’s banking sector, where higher interest margins have been offset by increased operating costs, regulatory pressures, and taxation measures. The bank’s ability to manage costs and sustain non-mark-up income growth will be key to maintaining profitability in the coming quarters.
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