Karachi: Samba Bank Limited has reported a decline in its profit for the quarter ended March 31, 2025, as Pakistan's economy continues its gradual path toward stabilization. The bank's financial results, detailed in its Director's Report, reflect the broader economic environment characterized by structural reforms and improved external account management.
On March 31, 2025, Samba Bank announced a profit after taxation of Rs. 167 million, a significant decrease from Rs. 359 million in the same period last year. The bank's earnings per share also fell to Rs. 0.17 from Rs. 0.36. This decline is attributed to a 16.1% decrease in net interest income, influenced by the reduction in the State Bank of Pakistan's policy rate from 22% in March 2024 to 12% in March 2025.
Despite the challenges, Samba Bank's non-interest income rose by 19.6%, closing at Rs. 383.1 million. The increase is primarily linked to capital gains on investments amounting to Rs. 47.9 million, as opposed to a capital loss of Rs. 0.46 million in the corresponding period last year. Additionally, the bank realized a gain of Rs. 243.2 million on its equity investment portfolio, directly recognized in the Statement of Changes in Equity.
Operating costs for the bank increased slightly by 1.1% over the comparative period, reflecting effective cost control measures. This occurred despite strategic initiatives, including the expansion of its branch network by 10 new branches and technology upgrades aimed at enhancing service delivery and operational efficiency.
The bank's balance sheet size increased by Rs. 9,061 million, mainly due to a Rs. 7,477 million rise in investments and Rs. 1,989 million in lending to financial institutions. This was partially offset by a Rs. 1,688 million decrease in loans and advances. On the liabilities side, interbank borrowings increased by Rs. 7,892 million, while deposits grew by Rs. 2,540 million, reflecting a 2.4% rise from the December 2024 position. The bank's CASA mix improved to 50.5% as of March 31, 2025.
According to information available from the Pakistan Stock Exchange (PSX), the Pakistan Credit Rating Agency Limited (PACRA) has assigned Samba Bank a credit rating of 'AA/A-1' with a stable outlook, indicating high credit quality and strong capability for timely payments.
Looking ahead, Pakistan's economic outlook continues to improve, supported by stabilization efforts under the IMF's Stand-By Arrangement and progress in structural reforms. The IMF has acknowledged Pakistan's achievement of revenue targets and key structural benchmarks, with a staff-level agreement reached for a $1.3 billion tranche.
As part of its future plans, Samba Bank has initiated its conversion toward Islamic Banking, following the State Bank of Pakistan's guidelines to transition the industry by 2027. The bank aims to expand its network further by opening 20 new branches and enhancing its digital footprint to improve accessibility and customer experience.