Karachi: Samba Bank Limited posted a mixed financial performance for the nine months ending September 30, 2024, amid a challenging economic environment. According to information available from the Pakistan Stock Exchange (PSX), the bank reported a decline in profit after tax and a strategic shift in its asset mix aimed at mitigating risks and aligning with market conditions.
Samba Bank's profit before tax fell to PKR 1.51 billion from PKR 1.85 billion in the same period last year, while profit after tax dropped to PKR 767 million from PKR 1.06 billion. The bank's earnings per share stood at PKR 0.76, down from PKR 1.05 a year earlier. Gross income, however, saw an increase of 5.2% compared to the previous year, driven primarily by a 55.4% rise in non-markup interest income. Capital gains on investments and equity portfolio gains added PKR 117.7 million and PKR 248.7 million, respectively, to the bank's overall income.
During this period, Samba Bank actively managed its delinquent loan portfolio, recovering over PKR 700 million. The bank’s operating expenses rose by 11.8%, reflecting the costs associated with expansion efforts, including the addition of new branches. By the end of 2024, the bank aims to have opened 10 new branches, with three already operational.
On the balance sheet, Samba Bank reported a reduction in total assets by PKR 259.5 million, or 0.15%, since December 31, 2023. The asset base now stands at PKR 178.4 billion, driven by a decline of PKR 12.87 billion in advances and a PKR 5.20 billion decrease in lending to financial institutions. Investments, however, grew by PKR 18.57 billion, enhancing the bank’s investment-to-deposit ratio. On the liabilities side, interbank borrowings rose by PKR 10.08 billion, while deposits fell by PKR 10.22 billion, marking an 8.9% decrease. Notably, the bank's CASA (Current Account Savings Account) mix improved to 49.42% from 45.44% in December 2023, indicating enhanced liquidity.
The Pakistan Credit Rating Agency (PACRA) reaffirmed Samba Bank’s credit rating at ‘AA/A-1’ with a stable outlook, reflecting the bank's robust liquidity and capacity to meet financial obligations in a timely manner.
In addition, Samba Bank’s parent entity, the Saudi National Bank (SNB), has received a non-binding offer from Bank Alfalah Limited for a potential acquisition of SNB's 84.51% stake in Samba Bank. SNB has agreed to evaluate the offer, subject to regulatory compliance.
As Samba Bank navigates this evolving landscape, the Board of Directors extends its gratitude to all stakeholders, including the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan, for their continued guidance and support.