Soneri Bank Limited posted a profit after tax (PAT) of Rs2.396 billion for the half year ended June 30, 2026, as the bank maintained stable earnings despite pressure from lower interest rates and higher operating costs.

The bank’s Board of Directors approved the financial results at its 217th meeting in Karachi on August 19.

Soneri Bank reported profit before tax of Rs4.795 billion during the period. PAT stood at Rs2.396 billion, compared with Rs2.497 billion in the same period last year.

The bank recorded earnings per share (EPS) of Rs2.1732, against Rs2.2648 a year earlier.

Non-Interest Income Supports Earnings

Soneri Bank’s net interest income fell 19.8% to Rs2.823 billion due to pressure on margins.

However, the bank offset much of the decline through stronger non-interest income. This income rose 50.96% to Rs5.368 billion, compared with Rs3.556 billion in the previous period.

Foreign exchange income increased by Rs722 million. Capital gains contributed Rs1.017 billion, while fee and commission income rose by Rs64 million.

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The results highlight the bank’s efforts to diversify revenue beyond traditional interest-based income.

Investment Portfolio Reaches Rs509bn

Soneri Bank increased its investment portfolio to Rs509.110 billion by June 30, 2026. The figure represents a 6.23% increase from Rs479.247 billion at the end of the previous year.

Average investments also rose to Rs501.123 billion from Rs462.446 billion.

However, investment income declined to Rs27.843 billion from Rs31.185 billion. The average net investment yield fell to 11.20% from 13.60%.

Lower policy rates also affected returns on the bank’s lending portfolio. The net yield on advances declined to 10.89%, compared with 11.86% in the previous period.

Despite lower yields, average net advances increased to Rs221.092 billion from Rs199.055 billion.

Income from advances therefore rose 1.9% to Rs11.936 billion from Rs11.708 billion.

Deposits Grow 13.8%

Soneri Bank’s deposit base reached Rs784.226 billion at the end of June 2026.

The figure represents a 13.8% increase from Rs689.106 billion at the end of 2025.

The bank also improved its deposit mix. Its CASA ratio increased to 87.17%, compared with 81.86% in December 2025.

The current account share also increased to 34.51%.

Average current account volumes grew 13.35%. This helped reduce the cost of deposits to 6.65% from 7.43% a year earlier.

The bank’s cost of funds also declined to 6.68% from 7.44%.

Branch Network Expands

Soneri Bank reduced its borrowings to Rs12.095 billion by June 30, compared with Rs61.644 billion at the end of 2025.

However, non-markup expenses increased to Rs13.195 billion from Rs11.280 billion. This represents a 16.98% rise.

The bank linked the increase partly to its branch expansion programme.

Soneri Bank opened 110 branches between June 30, 2025, and June 30, 2026. Its total branch network reached 682 branches.

Management said it would continue strict cost controls while expanding its network.

Asset Quality Improves

Soneri Bank also reported a significant improvement in asset quality.

The bank’s non-performing loan ratio fell to 2.48% at the end of June 2026, compared with 3.41% at the end of December 2025.

The improvement allowed the bank to record a net reversal of Rs1.186 billion in credit loss allowances.

The bank also strengthened its loan loss coverage ratio to 102.35%, compared with 96.77% at the end of 2025.

Strong Capital and Liquidity Position

Soneri Bank’s Capital Adequacy Ratio stood at 14.10% at the end of June 2026.

Its leverage ratio stood at 3.18%.

The bank reported a Liquidity Coverage Ratio of 198.73% and a Net Stable Funding Ratio of 175.81%.

Both ratios remained comfortably above regulatory requirements.

PACRA Upgrades Soneri Bank Rating

The Pakistan Credit Rating Agency (PACRA) upgraded Soneri Bank’s long-term entity rating to AA (Double A) from AA-.

PACRA maintained the bank’s short-term rating at the highest level of A1+, with a Stable Outlook.

PACRA also upgraded the rating of Soneri Bank’s Rs4 billion unsecured, subordinated and listed TFC-3 issue to AA from A+.

The bank’s Rs4 billion unsecured, subordinated, rated, listed, perpetual and non-cumulative TFC issue also received an upgraded rating of A+, compared with A previously.

The upgrades reflect Soneri Bank’s improving financial strength, corporate governance, risk management and business performance.