Silkbank has announced the results for the period ended September 30, 2011. The Bank's profit before tax increased from a loss of Rs 830.8 million in September 30, 2010 to a profit of Rs 398.8 million in September 30, 2011.
The profit showed an astounding growth over the same period last year. It reflected Silkbank's turn around with continuous earnings for the first three quarters of 2011, said in a press release. According to a statement issued, Silkbank management was confident that strong growth in balance sheet and revenues along with recoveries of non-performing advances would continue, and the Bank would close the full year 2011 on a strong footing.
Silkbank, since the acquisition of Saudi Pak Bank, launched several successful asset and liability products which would significantly improve future balance sheet spreads. The total deposits of the bank increased by an impressive Rs 6.62 billion to Rs 62.3 billion thus, reflecting a growth of 12 percent which outstripped the banking industry growth of 5.7 percent during the same period.
Advances increased by Rs 1.0 billion. The Bank's recovery efforts on non-performing loans resulted in reversal of provisions of Rs 1.06 billion for the nine-month period ended September 30, 2011. The Bank's total income after provisions increased by 146 percent from Rs 1,253 million in September 30, 2010 to Rs 3,086 million in September 30, 2011. Silkbank declared earnings of Rs 0.08 per share for Q-3 2011.-PR