Silkbank Limited (PSX: SILK) has finally announced its financial results for the year ending December 31, 2021, revealing a substantial net loss of Rs. 12.28 billion, an 87% increase from the Rs. 6.57 billion loss reported in 2020. The bank did not announce any dividend payouts for the period under review.

In a related development, Silkbank has received board approval to merge with United Bank Limited (UBL).

For the calendar year 2021, Silkbank’s Net Interest Income rose by 65% year-on-year to Rs. 2.83 billion. However, the bank faced significant interest expenses amounting to Rs. 7.6 billion, while its interest income was negative at Rs. 3.92 billion.

The bank saw a 22% increase in foreign exchange income, which climbed to Rs. 279 million from Rs. 228 million in the previous year. Despite this, Silkbank incurred a loss of Rs. 1.58 billion from the sale of securities.

Operating expenses (OPEX) slightly decreased to Rs. 7.45 billion from Rs. 7.57 billion in the same period last year. Additionally, Silkbank’s tax payments more than doubled to Rs. 6.35 billion in 2021, compared to Rs. 3.1 billion in the previous year.

The bank reported a loss per share of Rs. 1.35, up from a loss per share of Rs. 0.72 in 2020, reflecting the challenging financial year for Silkbank.