The State Bank of Pakistan (SBP) has sanctioned the amalgamation of Silk Bank Limited (SBL) with and into United Bank Limited (UBL).
In accordance with the approved scheme, SBL shareholders will receive new ordinary shares of UBL based on the swap ratio: one new ordinary share of UBL with a face value of PKR 10 per share for every 325 ordinary shares of SBL, each also valued at PKR 10 per share.
The issuance of new shares is contingent upon compliance with all legal and procedural requirements.
The SBP has designated Tuesday, March 11, 2025, as the effective date for the amalgamation. Consequently, as of this date, SBL will be fully integrated into UBL.
Silk Bank reported a post-tax loss of PKR 13.04 billion, largely attributed to negative Net Interest Income (NII) and provisions for non-performing loans (NPLs). As of December 31, 2024, Silk Bank’s deposit base stood at PKR 157.48 billion, reflecting an increase of PKR 3.22 billion.
Despite inflationary pressures and currency fluctuations, the bank successfully managed operational expenses through effective cost rationalization strategies, keeping operating expenses to a minimal level of PKR 769.95 million.
UBL recorded Profit Before Tax (PBT) of PKR 150.2 billion for the year ended December 31, 2024, achieving a robust growth of 39% year on year. Profit After Tax (PAT) stood at PKR 80.5 billion for 2024 as compared to PKR 53.2 billion for 2023, with Earnings per share (EPS) of PKR 65.78 compared to PKR 43.44 for last year.
The growth in the overall bank in 2024 was supported by strong performance in both domestic and international operations.
