Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the entity ratings of Soneri Bank Limited, reflecting the institution's strong business profile and strategic growth initiatives. The bank has seen substantial growth in its low-cost deposit base and has been optimizing its deposit composition while enhancing cost efficiency. Notably, Soneri Bank has expanded its branch network significantly, adding 101 new branches in the past year, bringing the total to 544.
Soneri Bank's strategic initiatives include a focus on digital innovation to improve customer experience and operational efficiency, aligning with industry trends. The bank has also experienced notable growth in trade business volumes and is actively expanding its footprint through a growing branch network. The newly established branches contributed 46% to the total deposit growth in the past year, while the overall customer base grew by 119%.
The bank's financial metrics have shown positive trends, with a 5% increase in deposits and an improvement in the Current Account and Savings Account Ratio (CASA) to 82%. The advances portfolio grew by 18.2%, leading to an increase in the Advance-to-Deposit Ratio (ADR) to 44.8%. Soneri Bank's asset quality has improved, with the NPL coverage ratio rising to 90% and the infection ratio declining to 3.1%, one of the lowest in the industry.
Investment growth was robust, with a 23.8% increase, skewed significantly towards government securities. Soneri Bank's net markup income rose by 9.6% year-on-year, while non-markup income increased by 4.6%, driven by higher fee and commission income. Despite these gains, net profits declined by 2.86% due to a 26.2% rise in non-markup expenses, attributed to inflation and branch expansion.
The bank's equity base increased to PKR 30.8 billion, with the Capital Adequacy Ratio (CAR) standing at 17.7%. Soneri Bank aims to strengthen its deposit base and deepen customer relationships through continued digital innovation and tailored solutions, with a strategic focus on non-fund-based exposures and operational efficiency to support long-term sustainability.