Soneri Bank to set up asset management arm with Rs1 billion capital

Soneri Bank Limited has announced plans to establish an asset management company (AMC) as a wholly owned subsidiary, marking its entry into Pakistan’s growing funds management space.

In a notice to the Pakistan Stock Exchange on Monday, the bank said its board of directors approved the move at its 216th meeting held in Karachi on April 27. The proposed AMC will be set up with an initial paid-up capital of Rs1 billion, fully funded by the bank.

The new entity is subject to regulatory approvals, including licensing requirements from the Securities and Exchange Commission of Pakistan (SECP) and other relevant authorities.

The bank said the decision is aimed at diversifying its business operations, a strategy increasingly adopted by commercial banks looking to expand into fee-based income streams amid margin pressures and evolving financial sector dynamics.

Asset management companies in Pakistan manage mutual funds and investment portfolios on behalf of retail and institutional clients. The sector has seen steady growth in recent years, driven by rising financial inclusion, digitisation, and increasing investor appetite for capital market-linked products.

By launching its own AMC, Soneri Bank is positioning itself to capture a share of this expanding market while deepening its product offering beyond conventional banking services such as deposits and lending.

The Rs1 billion capital commitment aligns with minimum capital requirements prescribed by the SECP for asset management companies. Industry analysts note that bank-sponsored AMCs benefit from an existing customer base, distribution networks, and brand recognition, giving them a competitive edge in attracting assets under management.

However, execution risks remain. The AMC space in Pakistan is already populated by established players, including those backed by larger banks and financial groups, meaning Soneri will need to differentiate its product suite and performance to gain traction.

The bank said it will inform the exchange of further developments as the process moves forward.

The move underscores a broader trend in Pakistan’s banking sector, where institutions are increasingly looking beyond traditional intermediation to sustain growth and profitability in a more competitive and regulated environment.