Silkbank has announced its Q3 results 2013, recording a growth in deposits, closing the quarter at Rs 70.85 billion. This growth was accompanied by a rise in gross advances by Rs 3.37 billion. The remittance business also improved by 60 percent and with more tie-ups with the remitting companies underway, a further increase was anticipated. The usage of the Silkbank VISA Debit Card for point-of-sale-transactions rose by 41 percent. Silkbank expanded its branch network and spread its presence to 33 cities within the country by opening 3 new Emaan Islamic Banking branches.
Silkbank recorded a loss of Rs 259 million after tax for the period ended September 30, 2013. The loss incurred by the bank was attributed primarily to various industry-wide provisions hitting the banking industry. The bank is pursuing a strategic course of action whereby it is bringing in low-cost deposits, converting and selling repossessed assets, reducing non-performing loans and rationalising administrative costs.
These tactical measures are aimed at making the bank profitable before the end of the year. Moreover, with the asset-base mix moving towards higher yielding assets, margins are set to widen in the future, ensuring higher profitability in the coming years. In addition to converting non-earning assets into earning assets, the bank is making its cost base increasingly efficient while rigorously growing its new business initiatives and ensuring the future robustness of the existing business.-PR
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