The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed its long-term rating of ‘AA-’ and short-term rating of ‘A1+’ for Soneri Bank Limited (PSX: SNBL), according to its latest press release. The maintained ratings reflect the institution’s resilient business profile, strengthened asset quality, and strategic growth trajectory supported by sound leadership and expanding operational capabilities.
Under the leadership of its experienced management and Board of Directors, Soneri Bank has continued to build a robust financial footprint across Pakistan. Notably, the bank reported a substantial increase in its deposit base, particularly in low-cost deposits, signaling effective deposit mobilization efforts. The growing reliance on Current and Savings Accounts (CASA), which stood at 82% by the end of CY24, compared to 79% in the previous year, points to an improving cost structure and stable funding sources.
In calendar year 2024, the bank aggressively expanded its branch network, adding 101 new branches and reaching a milestone of 544 branches, up from 443 in CY23. These newly added locations significantly contributed to overall deposit growth, accounting for nearly 46% of total new deposits. Parallel to its physical expansion, SNBL has intensified its efforts in digital transformation, aligning with modern banking trends to enhance customer experience and operational efficiency.
This dual strategy—expanding its physical and digital reach—has translated into a 119% year-on-year increase in the bank’s customer base during CY24. Additionally, the bank’s focus on trade business has resulted in rising volumes, supported by a solid growth in non-markup income, which grew 4.6% to Rs6.8 billion. A major contributor to this segment was trade-related commissions, making up 40% of the fee and commission income.
SNBL’s asset quality showed a notable improvement. The infection ratio dropped to 3.1% from 4.9% in CY23, and the Non-Performing Loan (NPL) coverage ratio rose to 90% from 80%, indicating strong risk management and recovery mechanisms. This places Soneri among banks with some of the lowest infection ratios in the industry.
The bank’s investment portfolio also grew by 23.8%, with a significant 99% tilt towards government securities, primarily floating-rate Pakistan Investment Bonds (PIBs), ensuring stable returns amid interest rate volatility.
Despite facing inflationary pressures and increased operational costs due to network expansion, Soneri Bank managed to increase its net markup income by 9.6% year-over-year to Rs24.9 billion. However, net profits slightly declined by 2.86% to Rs5.9 billion, mainly due to a 26.2% surge in non-markup expenses driven by inflation and infrastructure investments.
With an equity base of Rs30.8 billion and a Capital Adequacy Ratio (CAR) of 17.7%, SNBL remains financially strong and well-positioned to absorb risks and support growth. The bank’s strategic emphasis on non-fund-based business, cost efficiency, and technological enhancement is expected to play a critical role in its future sustainability and competitiveness.
Established in 1991 and sponsored by the Feerasta Family, Soneri Bank continues to evolve as a modern financial institution. The bank’s eight-member board includes representatives from its primary sponsors and the National Investment Trust (NIT), with Amin A. Feerasta serving as the Chairperson. SNBL’s governance structure supports its forward-looking vision of digital innovation, customer-centric services, and regulatory alignment in an increasingly complex banking environment.