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SBP profit increases by 14pc to Rs268 billion

SBP profit increases by 14pc to Rs268 billion

KARACHI: The State Bank of Pakistan’s (SBP) Annual Performance Report has revealed that the central bank has earned huge profit of Rs268 billion for the government during the fiscal year 2013-14.

According to the annual report approved by the SBP Central Board of Directors, the bank’s profit increased by 14pc to Rs2.68 billion from Rs235 billion it earned the last year. The increase is mainly attributable to higher discount, interest and return earned, and rise in other operating incomes.

Expenditure under the head of interest expenses also increased by 100pc compared to previous year due to increase in borrowings under currency swap arrangements and expense on securities sold under agreement to repurchase, the report added.

The Annual Performance Review, which also includes financial statements of the Bank and its subsidiaries and the auditor’s report thereon, said that the net exchange gains amounted to Rs14.1 billion during FY14 as against Rs6.7 billion during FY13, with the increase of Rs7.4 billion. The increase was mainly due to decline in exchange loss payable to the International Monetary Fund (IMF) amounting to Rs10.3 billion and special drawing rights (SDR) amounting to Rs1.1 billion due to strengthening of the rupee in relation to SDR. The exchange gain mainly arises due to depreciation of the rupee in relation to foreign currencies, particularly the US dollar and SDR. The SBP’s dividend income also decreased by 26pc to Rs4.3 billion during fiscal year 2013-14.

During the year under review, a gain of Rs28.5 billion was recorded under other operating income against the loss of Rs1bn in the previous financial year. The main reason for the rise was the gain of Rs31.186 billion on sale of UBL shares. The gross income rose by Rs55.28 billion, an increase of 22pc over last year, due mainly to rise in quantum of lending. The State Bank spent Rs6.14 billion for printing of notes and Rs6.4 billion was paid to the National Bank of Pakistan (NBP) as agency commission.