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

6

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.

9

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Disclaimer

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.