KARACHI: Silkbank managed to flip to a net profit of Rs695 million in 2011 from a net loss of Rs1.13 billion in the preceding year.
The new management has managed to bring the bank back to a profit regime after six years.
Saudi Pak Commercial Bank was acquired by a consortium comprising IFC, Bank Muscat, Nomura International and Sinthos Capital in 2008 and was renamed Silkbank Limited in 2009.
Net interest income more than doubled to Rs1.87 billion while non-interest income declined 29% to Rs847 million.
Silkbank’s efforts to reduce non-performing loans paid off and resulted in the recovery of Rs3.15 billion, according to a statement released on Wednesday.
Silkbank CEO Azmat Tarin on the occasion said that 2012 brings with it newer and bigger challenges. With the grant of Islamic Banking licence by the State Bank of Pakistan, efforts are already underway to leverage the bank’s existing infrastructure to roll out Islamic banking operations.
The total deposits reflected a strong growth of Rs8.4 billion for the year, outpacing the banking industry growth, to close at Rs64.1 billion.
Published in The Express Tribune, March 1st, 2012.
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