The Board of Directors of Soneri Bank Limited has approved the bank’s annual financial statements for the year ended 31 December 2025, following its 214th meeting held in Karachi on 29 January 2026. The results highlight a stable and consistent performance across key business areas, achieved despite a declining interest rate environment and higher effective taxation on the banking sector.
For the year ended 31 December 2025, Soneri Bank reported a profit before tax of Rs 11.606 billion and a profit after tax of Rs 4.558 billion. This compares with a profit before tax of Rs 12.638 billion and a profit after tax of Rs 5.901 billion recorded in the previous year. Earnings per share for the year stood at Rs 4.1341, down from Rs 5.3528 in 2024. The decline in bottom-line profitability was largely attributed to additional taxation imposed on banking companies in respect of prior years, which pushed the bank’s effective tax rate to 60.7 percent, compared to 53.3 percent last year.
Despite margin pressures arising from lower interest rates, the bank posted a notable improvement in net interest income, which increased to Rs 27.042 billion from Rs 24.948 billion in 2024. This represents a growth of 8.39 percent and was driven primarily by higher average business volumes that more than offset compression in spreads. The performance reflects the bank’s ability to grow its balance sheet and maintain income stability in a challenging macroeconomic environment.
Non-interest income also recorded strong momentum during the year, rising by 20.40 percent on a year-on-year basis to Rs 8.133 billion, compared to Rs 6.755 billion in the previous year. The increase was mainly supported by growth in fee and commission income, which expanded by 12.94 percent year on year. As a result of higher net interest and non-interest income, the bank’s overall revenue improved by Rs 3.474 billion, representing a year-on-year increase of 10.96 percent.
Operating expenses increased during the year in line with the bank’s strategic expansion plans. Non-markup expenses were reported at Rs 24.224 billion for 2025, compared to Rs 19.525 billion in 2024, reflecting a growth of 24.07 percent. Management attributed this increase primarily to the bank’s aggressive branch expansion strategy. During the year, Soneri Bank opened 126 branches, the highest number added in a single year in its history. As a result, the bank’s branch network expanded to 670 branches, up from 544 branches at the end of the previous year.
The bank stated that it remains focused on prudent cost control and disciplined budget management. With inflation expected to ease in the medium term, management expressed confidence that operating efficiencies would improve going forward, supporting profitability.
On the balance sheet side, Soneri Bank reported strong deposit growth, with total deposits closing at Rs 689.106 billion at year-end 2025, compared to Rs 543.146 billion in the previous year. This represents an increase of 26.87 percent. The bank also achieved a significant reduction in its cost of deposits, which declined to 7.10 percent from 13.13 percent last year. The improvement reflects a continued focus on enhancing the CASA mix, retaining current account balances, and rationalising overall funding costs while maintaining high service standards.
Net advances stood at Rs 214.324 billion as of 31 December 2025, compared to Rs 241.738 billion at the end of last year. Meanwhile, net investments increased by Rs 94.942 billion, or 24.7 percent, reaching Rs 479.247 billion, up from Rs 384.306 billion in 2024, indicating a strategic shift toward investment-led balance sheet growth.
Asset quality indicators showed a marginal increase in non-performing loans, with the NPL-to-advances ratio rising to 3.41 percent from 3.16 percent a year earlier. Specific coverage stood at 86.18 percent, while overall coverage, including expected credit loss provisions under IFRS 9, was recorded at a strong 96.77 percent.
The bank remained well capitalised, with a Capital Adequacy Ratio of 14.89 percent at the end of December 2025. Liquidity indicators were also comfortably above regulatory thresholds, with the Liquidity Coverage Ratio and Net Stable Funding Ratio recorded at 198.44 percent and 192.34 percent respectively.
Soneri Bank reiterated its commitment to maximising shareholder value through a customer-focused business strategy, aimed at delivering tailored financial solutions and sustaining growth across all business segments in an evolving banking landscape.
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