Soneri Bank Limited
Corporate Briefing Session 2023
Note about forward-looking statements
This document contains or incorporates by reference "forward-looking statements" regarding the belief or current expectations of Soneri Bank Limited (the "Bank"), the Board of Directors, and members of senior management about the strategy, businesses and performance of the Bank.
Such statements are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of the Bank.
Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. By their very nature, such statements involve risks and uncertainties, and therefore should not be taken as a direct representation regarding actual future performance. Actual results in the future may differ from those contained in any forward-looking statement.
Company Brief
The Bank - At a glance
Commencement of Operations | April 1992 |
Registered Office | Lahore |
Major Sponsors | Feerasta Family |
Credit Rating (Long Term / Short Term) | AA- / A1+ |
Branches | 440 (with 45 Islamic Branches; + 15 IBWs) |
Market Share* | 1.9% of deposits |
Assets* | PKR 644 bn |
Deposits* | PKR 510 bn |
Net Advances* | PKR 183 bn |
Total Equity* | PKR 25 bn |
Capital Adequacy Ratio* | 17.61% |
Sub-Debt (including Perpetual ADT 1 of Rs. 4 Bn) | PKR 8 bn |
Market Price (as of December 19th 2023) | PKR 10.60 per share |
*Data as of September 30, 2023
Governance Structure and Profile:
The Bank's primary sponsors are the Feerasta Family who collectively own majority share in the Bank. The Feerasta Family has diverse commercial interests ranging from manufacturing, exporting, banking and trade financing. The eight-member BoD, with diversified experience, comprises of three independent directors, four non executive directors (including three members representing Sponsors;
one NIT nominee ), and the CEO, being the deemed executive director. | 4 |
Equity Progression
Our share capital over the years……
Current Market Capitalization | Rs in Bns |
PKR 11.7 Bn | |
12.000 | 11.025 | |||||||
10.000 | 10.023 | |||||||
9.021 | ||||||||
8.000 | 8.028 | |||||||
6.000 | 6.023 | |||||||
5.019 | ||||||||
4.114 | ||||||||
4.000 | 3.117 | |||||||
2.000 | 1.018 | 1.272 | 1.653 | |||||
0.380 | 0.501 | 0.626 | 0.783 | |||||
0.300 | 0.330 | |||||||
- | ||||||||
1992 -2006 | 2007 onwards |
- Consistent Cash Dividend Payout
- The Bank has a free float at 330.739 Mn or 30.0% (September 2023)
- Historically, our share has been trading at a low BV multiple
Key Indicators | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 9M2023 | |
Cash dividend per share | 7.50% | 10.00% | 10.00% | 12.50% | 15.00% | 10.00% | - | |
Earning Per Share (Rs) | 1.51 | 1.62 | 1.73 | 2.18 | 2.59 | 1.71 | 3.76 | |
Market Value per share- period end (Rs)* | 13.40 | 12.67 | 9.85 | 9.95 | 9.71 | 10.00 | 10.60 | |
Market Value - High during the year (Rs)* | 19.20 | 14.40 | 13.24 | 13.80 | 11.00 | 11.00 | 11.70 | |
Market Value - Low during the year (Rs)* | 12.25 | 11.76 | 9.01 | 7.76 | 8.40 | 8.50 | 8.14 | |
Book Value per share (Rs) | 16.78 | 16.32 | 18.33 | 21.00 | 19.62 | 19.18 | 22.65 | |
Price to book value (net assets based) | 0.80 | 0.78 | 0.54 | 0.47 | 0.49 | 0.52 | 0.47 | |
Price to Earning Ratio | 8.90 | 7.83 | 5.70 | 4.57 | 3.75 | 5.86 | 2.82 | |
Total Equity (Rs in Bns) | 18.51 | 17.99 | 20.21 | 23.16 | 21.64 | 21.15 | 24.97 | |
Sub Debt (Rs in Bns) | 3 | 7 | 7 | 7 | 7 | 8 | 8 | |
Capital Adequacy Ratio | 12.77 | 14.70 | 15.79 | 16.97 | 13.82 | 15.19 | 17.61 | |
*Data upto December 19, 2023 | 5 |
Earnings, Payouts and Shareholding Pattern
Presented below is the Bank's Dividend payout, as compared to the earnings for the relevant year and the market price of the Bank's share.
62%
58% | 58% | 58% | 58% | ||||||||||
50% | |||||||||||||
3 | 16.00 | ||||||||||||
13.40 | |||||||||||||
12.67 | 14.00 | ||||||||||||
2.5 | |||||||||||||
2.59 | 12.00 | ||||||||||||
2.18 | |||||||||||||
2 | 9.85 | 10.00 | |||||||||||
10.00 | |||||||||||||
1.73 | 9.95 | 9.71 | |||||||||||
1.62 | 1.71 | ||||||||||||
1.5 | 8.00 | ||||||||||||
1.51 | 1.50 | ||||||||||||
1 | 1.25 | 6.00 | |||||||||||
1.00 | 1.00 | 1.00 | 4.00 | ||||||||||
0.5 | 0.75 | ||||||||||||
2.00 | |||||||||||||
0 | - | ||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||||||||
Earning Per Share | Cash dividend per share | Market Price Year End | |||||||||||
Payout Ratio
Pattern of Shareholding - September 2023
Particulars | Shares (Millions) | Percentage |
DIRECTORS, CEO & THEIR SPOUSES | 10.12 | 0.92 |
AND MINOR CHILDREN | ||
ASSOCIATED COMPANIES | 634.44 | 57.55 |
NIT | 100.97 | 9.16 |
BANKS, DFI & NBFI | 106.20 | 9.63 |
INSURANCE COMPANIES | 13.56 | 1.23 |
MUTUAL FUNDS | 0.01 | 0.00 |
GENERAL PUBLIC (LOCAL) | 212.60 | 19.28 |
GENERAL PUBLIC (FOREIGN) | 13.85 | 1.26 |
OTHERS | 8.90 | 0.81 |
JOINT STOCK COMPANIES | 1.77 | 0.16 |
FOREIGN COMPANIES | 0.05 | 0.00 |
MODARABAS | 0.00 | 0.00 |
Total | 1,102.46 | 100.00 |
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Key Developments
Key Developments
Target Branches at year | |
Enhanced Outreach through | end 2023 are 443 |
Network Expansion and Regular | branches with 45 Islamic |
Sales Drives | Branches and 15 Islamic |
Windows |
Registration % of | |
Penetration through focus on | customers out of Eligible |
Digital Banking Solutions | Digital Accounts has |
inched up to 50% |
Fresh Issuance of PKR 4 Bn TFCs -
replacing previously issued TFCs December 2022 of PKR 3 Bn
Till date, 37 new branches have been added to our network in 2023 taking the total tally to 440.
During the year, our retail teams successfully initiated drives to tap market potential and further increase the customer base, with a focus on client conversions, walk-in activations and dormancy reactivation.
Our target for 2024 is to add another 100 branches to our network across Pakistan.
We have continued to focus on customer experience through various enhancements to our digital banking channels:
- Improved Interface for Internet Banking;
- Enhanced Mobile Banking App with additional features;
- One Stop Shop for seamless banking experience
In December 2022, the Bank after exercising the Call Back option on its TFC II, raised additional sub-debt of PKR 4 Bn in replacement. The instrument carries a rating of A+ from PACRA. The said instrument has strengthened the Bank's CAR allowing further room for growth.
8
Key Developments
Some of the Key Products Introduced / Enhanced this year:
Improved / Enhanced / New Product Offerings
Soneri Enable - E-Learning
Application
Persons with Disabilities
(PWDs)
Gender Diversity
The Bank continues to improve its
existing Product Suite to offer tailored solutions to customers based on their needs
Includes e‐learning modules, calendars, assessments, surveys, e‐library, training needs analyses (TNA), and other learning interventions
Candidates continue to be on-boarded;
Model branches also in place
The Bank remains committed to Gender
Equality, providing and equal
opportunity to women across the
workplace
- Soneri Trans@ct Eazy Collect - Cash Management Solution;
- Soneri Employee Banking - Payroll Disbursement Solution;
- Soneri Remit Direct Account - for facilitation of remittances from abroad;
- Soneri Ladies First Car Finance;
- Soneri Forex Plus - Current and Savings Accounts;
Additionally, Soneri Bank continues to provide Hajj Application facilitation - 2nd year running;
Soneri Enable - an application for the Learning Management System (LMS) of the Bank, facilitates online learning for the Bank's staff to acquire the required knowledge and skills; whether they are for the current role or to achieve aspirations.
The Bank is compliant with the onboarding requirements for Persons with Disabilities (PWDs).
Specific sessions are conducted in house for awareness and training of our staff with respect to PWDs.
The SBP has issued directives to all Banks for Gender Diversity at the workplace. The Bank has maintained a significant level of compliance with the directives in this regard, and plans to bridge any gaps through additional batch hirings in the coming days.
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Soneri Bank Ltd. published this content on 21 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 December 2023 06:47:09 UTC.