Soneri Bank 2025 Profit Falls 23% to Rs4.6 Billion as Branch Costs Bite

Soneri Bank, a mid-sized Pakistani bank, ended 2025 with lower profit even as it grew deposits at a fast clip and opened more branches than in any year of its history. The numbers show a bank trading near-term earnings for a bigger footprint while the interest rate cycle worked against it.

What the Soneri Bank 2025 results showed

Soneri Bank posted profit before tax of Rs11.606 billion and profit after tax of Rs4.558 billion for the year ended December 31, 2025, down from Rs12.638 billion and Rs5.901 billion respectively in 2024. Earnings per share fell to Rs4.13 from Rs5.35. Net interest income, the gap between what the bank earns on loans and pays on deposits, rose 8.4 percent to about Rs27 billion, and non-interest income climbed 20.4 percent. Deposits jumped 26.9 percent to Rs689.1 billion. The board, in its meeting on January 29, 2026, recommended a final cash dividend of Rs1.50 per share, which shareholders later approved. The bank opened 126 branches in a single year, its highest ever, taking the network to 670 branches.

Why it matters for bank stocks

Two forces pulled Soneri's profit down. The first is the rate cycle. As the State Bank cut its policy rate through 2025, the yields banks earn on loans and government bonds eased, pressuring margins across the sector. The second is specific to Soneri. Opening 126 branches in one year is a heavy upfront cost in rent, staff, and setup, and those costs hit the profit line well before the new branches start paying their way. The gap between a higher pre-tax profit base and a much lower after-tax result also points to a heavier tax charge weighing on the bottom line. Faster deposit growth is the upside of the branch push, since cheaper deposits are the raw material a bank lends out.

Which stocks, and why

This is a direct result for Soneri Bank, and the near-term read is negative because profit fell more than 20 percent and EPS dropped. The picture is mixed underneath. Strong deposit and core income growth, plus a much larger branch network, are investments that can lift earnings later if the new branches mature and the rate cycle turns. The influence is medium because the decline reflects a sector-wide rate move plus a deliberate expansion rather than a one-off shock, and the effect is sustained rather than passing.

What to watch

Track whether the new branches start contributing, the cost-to-income ratio as expansion costs settle, and net interest margins as the policy rate path becomes clearer. Watch deposit growth holding up, the tax charge, and the dividend stance after a softer year, since a steady payout depends on earnings recovering.