Daily The Business

Sindh Bank profit down by robust 23pc

LEAs’ drive against black money, GoS withdrawal reduced earning: directors

Profits likely to reduce further significantly once Summit Bank is
merged: Experts

M J Hayat

LAHORE: Sindh Bank has posted a hefty decline of 23.58 percent in its
profit after tax (PAT) for the nine months of Calendar year 2018
against the same period last year 2017.

The bank’s total non-markup income took a nosedive by 71 percent from
Rs 1.2 billion to Rs 360 million pushing down the total non- mark and
interest income from Rs 5.01 billion in nine months in 2017 to Rs 4.67
billion in nine month of 2018. However, the net markup and interest
income escalated from Rs 3.84 billion in nine months in 2017 to Rs
4.48 billion in the same period in 2018.

Though non markup / interest income of the bank has fallen down by
71.03 percent yet the interest expenses shot up to 3.3 billion in 2018
from Rs 3.1 billion in nine months in 2017.

The administrative expenses of the bank shot up by 4.61 percent in
the period under review despite the fact that profit of the bank for
the nine months has declined by hefty 23.58 percent and the other
expenses also escalated unreasonably high.

The experts suspected something wrong in the bottom urging the bank
administration to arrest the extravagance and profligacy, tighten
their belts to boost the profit of the bank.

They are also of the view that the bank has performed lethargically
and complacently on the recovery side and the non performing loans
(NPLs) have shot up by 139.15 from Rs 74 million in 2017 to Rs 179
million in 2018.

The bank posted total profit after tax of Rs 808 million during the
nine months down Rs 23.58 percent against Rs 1.05 billion in the same
period 2017.

Another expert said that the profit earning of the Sindh Bank will
further reduce significantly once the Summit Bank is merged in the
Sindh Bank as the loss-making Summit Bank will further add to the
already bleeding balance sheet of Sindh bank which will further add to
the losses to the bank.

On the other hand the bank directors of the bank reported that the
decline of 23.58 percent took place mainly due to the government of
Sindh’s mega withdrawal to meet its budgetary requirements and the Law
Enforcement Agencies move against the black money also made the
depositors shaky and nervous who in panic went forth to withdraw their
funds from the bank. However, the directors are optimistic and hoped
to cover up the losses in future.

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