⚡ Flash Summary

Security Investment Bank Limited (SIBL) reported its financial results for the quarter ended September 30, 2025. The company’s statement of financial position shows total assets of PKR 913.87 million, slightly down from PKR 916.64 million in December 2024. The statement of profit or loss reveals an after-tax profit of PKR 26.52 million for the nine months ended September 2025, compared to PKR 56.73 million for the same period in 2024. Basic and diluted earnings per share (EPS) decreased to PKR 0.448 from PKR 0.972 year over year. The board did not recommend any cash dividend, bonus shares, or right shares.

📌 Key Takeaways

• 📉 **Profit Decline:** Net profit after tax plummeted to PKR 26.52 million for the nine months ended September 2025, a significant decrease from PKR 56.73 million in the same period last year.
• 💸 **EPS Decrease:** Basic and diluted earnings per share (EPS) saw a considerable drop to PKR 0.448 from PKR 0.972 year over year, indicating lower profitability per share.
• 💼 **Total Assets:** Total assets slightly decreased to PKR 913.87 million as of September 30, 2025, compared to PKR 916.64 million in December 2024.
• 🚫 **No Dividends:** The board of directors did not recommend any cash dividend, bonus shares, or right shares, potentially disappointing investors seeking income.
• 📊 **Operating Profit Before Tax:** Operating profit before tax decreased to PKR 27.41 million for the nine months ended September 2025, compared to PKR 66.54 million in the same period last year.
• 📉 **Income Decline:** Total income decreased from PKR 104.72 million to PKR 88.16 million.
• 💰 **Cash Flow from Operations:** Net cash inflows from operating activities increased to PKR 79.62 million, compared to PKR 23.57 million
• 🏢 **Non-Current Assets:** Total non-current assets increased slightly to PKR 284.88 million from PKR 266.86 million.
• 🏦 **Current Assets:** Current assets decreased from PKR 649.78 million to PKR 628.99 million.
• ⚠️ **Decreased Tax Refund:** Tax refund due from Government decreased from PKR 34.03 million to PKR 26.52 million.

🎯 Investment Thesis

Based on the declining financial performance, including a substantial decrease in profit and EPS, I recommend a SELL rating for SIBL. The lack of dividends and the negative valuation impact further support this recommendation. The price target is PKR 5, based on a conservative earnings multiple, with a time horizon of 6 months, reflecting the urgency of addressing the profitability concerns.