JS Bank Limited (PSX: JSBL) has reported a consolidated profit after tax of Rs2.99 billion (EPS: Rs1.07) for the third quarter of 2024, marking a substantial 44.18% decline from Rs5.36 billion (EPS: Rs3.62) earned in the same quarter last year. This drop is largely attributed to an extraordinary adjustment of Rs3.65 billion made in Q2 CY23, which significantly inflated last year’s earnings.
Earnings Analysis
Excluding the impact of this adjustment, the bank’s earnings reveal a remarkable increase of 75.51% year-on-year for Q3 CY24, underscoring the strength of its underlying business performance.
Key Financial Metrics
- Net Interest Income (NII): The bank’s NII soared by 102.59% year-on-year, reaching Rs18.47 billion in Q3 CY24, up from Rs9.11 billion in Q3 CY23. This substantial growth reflects the bank’s effective management of interest-earning assets and liabilities.
- Non-Markup Income: Total non-markup income also experienced a healthy increase of 14.38%, climbing to Rs3.87 billion from Rs3.38 billion in the previous year. This growth was driven by strong performance across various components, particularly fee and commission income.
Rising Expenses
On the expense front, total non-markup expenses surged by 74.84% to Rs13.39 billion in Q3 CY24, compared to Rs7.66 billion in the same quarter last year. The rise in expenses was primarily attributed to increased operating costs and contributions towards the Workers’ Welfare Fund.
Provisions and Taxation
JS Bank reported a credit loss allowance of Rs3.03 billion during the review quarter, significantly higher than the Rs1.83 billion recorded in Q3 CY23. Additionally, the bank’s tax expenses jumped by 123.92% to Rs2.93 billion compared to Rs1.31 billion in the same period last year.
Consolidated Profit and Loss Summary
| Metric | Q3 FY24 (‘000 Rupees) | Q3 FY23 (‘000 Rupees) | % Change |
|---|---|---|---|
| Mark-up/return/interest earned | 56,953,732 | 34,079,868 | 67.12% |
| Mark-up/return/interest expensed | 38,486,839 | 24,964,402 | 54.17% |
| Net mark-up/interest income | 18,466,893 | 9,115,466 | 102.59% |
| Total non-mark-up/interest income | 3,871,033 | 3,384,250 | 14.38% |
| Total income | 22,337,926 | 12,499,716 | 78.71% |
| Total non-mark-up/interest expenses | 13,387,103 | 7,656,962 | 74.84% |
| Profit before provisions | 8,950,823 | 4,842,754 | 84.83% |
| Credit loss allowance / provisions and write offs | (3,028,533) | (1,829,625) | 65.53% |
| Profit before taxation | 5,922,290 | 6,666,017 | -11.16% |
| Taxation | 2,932,459 | 1,309,627 | 123.92% |
| Profit after taxation | 2,989,831 | 5,356,390 | -44.18% |
| Earnings per share (EPS) | 1.07 | 3.62 | – |
Conclusion
Despite the decline in earnings attributed to prior adjustments, JS Bank’s operational performance demonstrates resilience, particularly in net interest income and non-markup income growth. The bank’s focus on managing expenses and provisioning will be crucial as it navigates the challenges ahead. Investors and stakeholders will be keen to see how the bank leverages its strong income growth to enhance profitability in subsequent quarters.
JS Bank Limited (PSX: JSBL) has reported a consolidated profit after tax of Rs2.99 billion (EPS: Rs1.07) for the third quarter of 2024, marking a substantial 44.18% decline from Rs5.36 billion (EPS: Rs3.62) earned in the same quarter last year. This drop is largely attributed to an extraordinary adjustment of Rs3.65 billion made in Q2 CY23, which significantly inflated last year’s earnings.
Earnings Analysis
Excluding the impact of this adjustment, the bank’s earnings reveal a remarkable increase of 75.51% year-on-year for Q3 CY24, underscoring the strength of its underlying business performance.
Key Financial Metrics
- Net Interest Income (NII): The bank’s NII soared by 102.59% year-on-year, reaching Rs18.47 billion in Q3 CY24, up from Rs9.11 billion in Q3 CY23. This substantial growth reflects the bank’s effective management of interest-earning assets and liabilities.
- Non-Markup Income: Total non-markup income also experienced a healthy increase of 14.38%, climbing to Rs3.87 billion from Rs3.38 billion in the previous year. This growth was driven by strong performance across various components, particularly fee and commission income.
Rising Expenses
On the expense front, total non-markup expenses surged by 74.84% to Rs13.39 billion in Q3 CY24, compared to Rs7.66 billion in the same quarter last year. The rise in expenses was primarily attributed to increased operating costs and contributions towards the Workers’ Welfare Fund.
Provisions and Taxation
JS Bank reported a credit loss allowance of Rs3.03 billion during the review quarter, significantly higher than the Rs1.83 billion recorded in Q3 CY23. Additionally, the bank’s tax expenses jumped by 123.92% to Rs2.93 billion compared to Rs1.31 billion in the same period last year.
Consolidated Profit and Loss Summary
| Metric | Q3 FY24 (‘000 Rupees) | Q3 FY23 (‘000 Rupees) | % Change |
|---|---|---|---|
| Mark-up/return/interest earned | 56,953,732 | 34,079,868 | 67.12% |
| Mark-up/return/interest expensed | 38,486,839 | 24,964,402 | 54.17% |
| Net mark-up/interest income | 18,466,893 | 9,115,466 | 102.59% |
| Total non-mark-up/interest income | 3,871,033 | 3,384,250 | 14.38% |
| Total income | 22,337,926 | 12,499,716 | 78.71% |
| Total non-mark-up/interest expenses | 13,387,103 | 7,656,962 | 74.84% |
| Profit before provisions | 8,950,823 | 4,842,754 | 84.83% |
| Credit loss allowance / provisions and write offs | (3,028,533) | (1,829,625) | 65.53% |
| Profit before taxation | 5,922,290 | 6,666,017 | -11.16% |
| Taxation | 2,932,459 | 1,309,627 | 123.92% |
| Profit after taxation | 2,989,831 | 5,356,390 | -44.18% |
| Earnings per share (EPS) | 1.07 | 3.62 | – |
Conclusion
Despite the decline in earnings attributed to prior adjustments, JS Bank’s operational performance demonstrates resilience, particularly in net interest income and non-markup income growth. The bank’s focus on managing expenses and provisioning will be crucial as it navigates the challenges ahead. Investors and stakeholders will be keen to see how the bank leverages its strong income growth to enhance profitability in subsequent quarters.
JS Bank Limited (PSX: JSBL) has reported a consolidated profit after tax of Rs2.99 billion (EPS: Rs1.07) for the third quarter of 2024, marking a substantial 44.18% decline from Rs5.36 billion (EPS: Rs3.62) earned in the same quarter last year. This drop is largely attributed to an extraordinary adjustment of Rs3.65 billion made in Q2 CY23, which significantly inflated last year’s earnings.
Earnings Analysis
Excluding the impact of this adjustment, the bank’s earnings reveal a remarkable increase of 75.51% year-on-year for Q3 CY24, underscoring the strength of its underlying business performance.
Key Financial Metrics
- Net Interest Income (NII): The bank’s NII soared by 102.59% year-on-year, reaching Rs18.47 billion in Q3 CY24, up from Rs9.11 billion in Q3 CY23. This substantial growth reflects the bank’s effective management of interest-earning assets and liabilities.
- Non-Markup Income: Total non-markup income also experienced a healthy increase of 14.38%, climbing to Rs3.87 billion from Rs3.38 billion in the previous year. This growth was driven by strong performance across various components, particularly fee and commission income.
Rising Expenses
On the expense front, total non-markup expenses surged by 74.84% to Rs13.39 billion in Q3 CY24, compared to Rs7.66 billion in the same quarter last year. The rise in expenses was primarily attributed to increased operating costs and contributions towards the Workers’ Welfare Fund.
Provisions and Taxation
JS Bank reported a credit loss allowance of Rs3.03 billion during the review quarter, significantly higher than the Rs1.83 billion recorded in Q3 CY23. Additionally, the bank’s tax expenses jumped by 123.92% to Rs2.93 billion compared to Rs1.31 billion in the same period last year.
Consolidated Profit and Loss Summary
| Metric | Q3 FY24 (‘000 Rupees) | Q3 FY23 (‘000 Rupees) | % Change |
|---|---|---|---|
| Mark-up/return/interest earned | 56,953,732 | 34,079,868 | 67.12% |
| Mark-up/return/interest expensed | 38,486,839 | 24,964,402 | 54.17% |
| Net mark-up/interest income | 18,466,893 | 9,115,466 | 102.59% |
| Total non-mark-up/interest income | 3,871,033 | 3,384,250 | 14.38% |
| Total income | 22,337,926 | 12,499,716 | 78.71% |
| Total non-mark-up/interest expenses | 13,387,103 | 7,656,962 | 74.84% |
| Profit before provisions | 8,950,823 | 4,842,754 | 84.83% |
| Credit loss allowance / provisions and write offs | (3,028,533) | (1,829,625) | 65.53% |
| Profit before taxation | 5,922,290 | 6,666,017 | -11.16% |
| Taxation | 2,932,459 | 1,309,627 | 123.92% |
| Profit after taxation | 2,989,831 | 5,356,390 | -44.18% |
| Earnings per share (EPS) | 1.07 | 3.62 | – |
Conclusion
Despite the decline in earnings attributed to prior adjustments, JS Bank’s operational performance demonstrates resilience, particularly in net interest income and non-markup income growth. The bank’s focus on managing expenses and provisioning will be crucial as it navigates the challenges ahead. Investors and stakeholders will be keen to see how the bank leverages its strong income growth to enhance profitability in subsequent quarters.
JS Bank Limited (PSX: JSBL) has reported a consolidated profit after tax of Rs2.99 billion (EPS: Rs1.07) for the third quarter of 2024, marking a substantial 44.18% decline from Rs5.36 billion (EPS: Rs3.62) earned in the same quarter last year. This drop is largely attributed to an extraordinary adjustment of Rs3.65 billion made in Q2 CY23, which significantly inflated last year’s earnings.
Earnings Analysis
Excluding the impact of this adjustment, the bank’s earnings reveal a remarkable increase of 75.51% year-on-year for Q3 CY24, underscoring the strength of its underlying business performance.
Key Financial Metrics
- Net Interest Income (NII): The bank’s NII soared by 102.59% year-on-year, reaching Rs18.47 billion in Q3 CY24, up from Rs9.11 billion in Q3 CY23. This substantial growth reflects the bank’s effective management of interest-earning assets and liabilities.
- Non-Markup Income: Total non-markup income also experienced a healthy increase of 14.38%, climbing to Rs3.87 billion from Rs3.38 billion in the previous year. This growth was driven by strong performance across various components, particularly fee and commission income.
Rising Expenses
On the expense front, total non-markup expenses surged by 74.84% to Rs13.39 billion in Q3 CY24, compared to Rs7.66 billion in the same quarter last year. The rise in expenses was primarily attributed to increased operating costs and contributions towards the Workers’ Welfare Fund.
Provisions and Taxation
JS Bank reported a credit loss allowance of Rs3.03 billion during the review quarter, significantly higher than the Rs1.83 billion recorded in Q3 CY23. Additionally, the bank’s tax expenses jumped by 123.92% to Rs2.93 billion compared to Rs1.31 billion in the same period last year.
Consolidated Profit and Loss Summary
| Metric | Q3 FY24 (‘000 Rupees) | Q3 FY23 (‘000 Rupees) | % Change |
|---|---|---|---|
| Mark-up/return/interest earned | 56,953,732 | 34,079,868 | 67.12% |
| Mark-up/return/interest expensed | 38,486,839 | 24,964,402 | 54.17% |
| Net mark-up/interest income | 18,466,893 | 9,115,466 | 102.59% |
| Total non-mark-up/interest income | 3,871,033 | 3,384,250 | 14.38% |
| Total income | 22,337,926 | 12,499,716 | 78.71% |
| Total non-mark-up/interest expenses | 13,387,103 | 7,656,962 | 74.84% |
| Profit before provisions | 8,950,823 | 4,842,754 | 84.83% |
| Credit loss allowance / provisions and write offs | (3,028,533) | (1,829,625) | 65.53% |
| Profit before taxation | 5,922,290 | 6,666,017 | -11.16% |
| Taxation | 2,932,459 | 1,309,627 | 123.92% |
| Profit after taxation | 2,989,831 | 5,356,390 | -44.18% |
| Earnings per share (EPS) | 1.07 | 3.62 | – |
Conclusion
Despite the decline in earnings attributed to prior adjustments, JS Bank’s operational performance demonstrates resilience, particularly in net interest income and non-markup income growth. The bank’s focus on managing expenses and provisioning will be crucial as it navigates the challenges ahead. Investors and stakeholders will be keen to see how the bank leverages its strong income growth to enhance profitability in subsequent quarters.
