Lahore: Escorts Investment Bank has reported a substantial increase in net losses for the financial year ending June 30, 2025. The bank's revenue declined to Rs.108.38 million from Rs.136.49 million in the previous fiscal year. This decrease in revenue reflects consistent business activity in a challenging economic environment.
The company's net loss for the year amounted to Rs.68.40 million, a significant increase compared to a loss of Rs.23.10 million recorded in the prior year. This was primarily attributed to prudent provisioning of Rs.9.70 million, up from Rs.3.97 million in FY24, and the impact of taxation. These factors underscore the bank's proactive risk management and compliance discipline.
Operating costs for the year stood at Rs.173.983 million, compared to Rs.163.199 million for the year 2024. Despite high inflation, management maintained costs at nearly the same level. During FY25, the bank remained focused on cost rationalization through strict discipline over administrative and personnel expenses.
According to information available from the Pakistan Stock Exchange (PSX), the financial position of the bank as of June 30, 2025, showed total assets of Rs.660.80 million, compared to Rs.726.06 million in the previous year. The total equity and liabilities reflected a decrease, aligning with the overall financial performance for the period.
The statement of financial position revealed that the authorized share capital remained constant at 300 million ordinary shares of Rs.10 each. The issued, subscribed, and paid-up capital was recorded at Rs.1,356 million. Capital and revenue reserves, alongside revaluation surplus on property and equipment, contributed to the financial structure.
In terms of income, the bank reported a profit on financing of Rs.84.41 million and returns on investments amounting to Rs.4.23 million. Income from fees and commissions and profit on bank deposits were Rs.8.58 million and Rs.7.71 million, respectively. However, administrative expenses and finance costs led to an operating loss before provisions and taxation.
Non-current assets at the end of the fiscal year were valued at Rs.345.85 million, while current assets totaled Rs.314.95 million. The bank's cash and bank balances saw a reduction to Rs.23.84 million from Rs.124.97 million the previous year, indicating changes in liquidity management.
Overall, the financial year 2024-2025 was characterized by increased losses and reduced revenue, with the bank continuing its efforts in risk management and cost rationalization amid economic challenges.