Silkbank Limited in its board meeting held on October 28, 2016 declared an operating profit of Rs 1.32 billion for the nine months ended September, 30, 2016. The Bank's profit before tax of Rs 783 million reflects a notable growth of 772 percent compared to the same period last year. The steady improvement in profitability is the result of implementation of a well formulated business strategy.
The ongoing focus is two-fold; on the revenue side, growth is led by contributions from high yielding consumer assets; and on the cost side, a steady rise in CASA is bringing the cost of funds down - evident from the deposit mix which stands at 61 percent of CASA deposits against 58 percent for the same period last year.
Thus Net mark-up income of the Bank grew significantly by 43 percent compared to the nine months ended September 30, 2015, which substantiates Bank's operational efficiency. The Bank's total assets base grew by 16 percent as compared to the position as at September 30, 2015 - due to the increase in investments by 23 percent and net advances by 11 percent. Deposits have increased by Rs 6.3 billion from September 2015 - taking the total deposits to Rs 85.96 billion - reflecting continued depositors' confidence in the Bank.-PR