SBP earns Rs260bn profit in FY12
KARACHI, Oct 30: The State Bank earned a huge profit of Rs260 billion for the financial year 2012 while the gold price increase added another Rs45 billion in its income.
The State Bank on Tuesday issued its financial statements revealing its earnings jumped by 44 per cent over the last year. The SBP earned a total profit of Rs180 billion in FY11.
The SBP transferred Rs200 billion to the government while rest of the profit was retained by it. It is the biggest revenue for the government compared to any sector of the economy. The central bank has been a single largest contributor to the revenue for the last three years.
The profits on other heads like dividend and exchange gain also increased to Rs15 billion and Rs42 billion during the year compared to Rs11.9 billion and Rs1.9 billion of the previous year respectively.
The State Bank responsible for keeping the inflation under control seems to have become victim of it during the year. According to report the SBP spent 25 per cent more on its administrative other expenses during the year.
The financial statements showed the State Bank’ total expenses rose to Rs20 billion for administrative and other expenses compared to Rs15 billion of the previous year.
Inflation also impacted the notes printing charges substantially during the year. The SBP spent Rs5.7 billion for notes printing compared to Rs4.6 billion of the previous year.
The most amazing is the gold reserves which increased the income of the State Bank significantly high. The unrealised appreciation on gold reserves in FY12 rose to Rs45 billion while the same was even higher last year when it appreciated by Rs49 billion.
The gold price hike during the two years added a total Rs94 billion as unrealised income of the State Bank.
The State Bank’s huge profit also reflects the state of the banking in the country since the State Bank earns profits by lending money to the government as well as to the banks.
The central bank on Tuesday conducted an open market operation and pumped Rs641 billion into the banking system to keep the banks liquid. Bankers say this money is real shortage of liquidity of the banks.