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Record profit before tax of PKR 24.7 billion, up 53 per cent year on year
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Strong revenue of PKR 29.3 billion, growth of 44 per cent
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Robust growth in deposits of PKR 45 billion, up by 6 per cent from start of the year
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Current accounts grew by PKR 33 billion, up 9 per cent during first quarter
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Healthy increase in total assets, growth of 7 per cent from start of the year
KARACHI: Standard Chartered Bank Pakistan Limited (SCBPL) delivered a strong performance, that has led to a growth of 53% in profit before tax to PKR 24.7 billion.
Overall revenue grew 44%, whereas client revenue increased by 36% year on year with positive contributions from all segments. While operating expenses increased 22% from comparative period in line with inflation, bank continues to lead the industry with the lowest cost to income ratio of 17%. Moreover, lower impairments as a result of prudent risk approach coupled with recoveries of bad debts led to a net release of PKR 0.5 billion in Q1’24 compared to a net charge of PKR 0.2 billion in the comparative period.
On the liabilities side, the Bank’s total deposits stand at PKR 765bn; up by PKR 45 billion, whereas current accounts registered a healthy growth of PKR 33 billion up 9% since the start of this year and comprise 52% of the deposit base. On asset side, net advances were lower by PKR 11 billion or 5% since the start of this year.
The Bank is investing in its digital capabilities and infrastructure to enhance our clients’ banking experience through the introduction of innovative solutions. We have made steady progress in further strengthening our control and compliance environment by focusing on our people, culture and systems. The Bank stands well placed to cater for the needs of its clients and will continue its strategy to build a profitable, efficient and sustainable portfolio.
Commenting on the results, Mr. Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said, “I am incredibly proud of our team’s hard work and dedication that has led to our outstanding performance in Q1 2024. This achievement reflects our commitment to excellence and our relentless pursuit of success in serving our customers and driving growth.
I am thankful to our shareholders, clients and business partners for their ongoing trust in our capabilities, and our associates, staff and colleagues for their keen commitment in supporting the Bank at each step as we bring forth the best-in-class banking experience. We are optimistic about 2024 as we see more growth opportunities opening up with improvement in economic imprints as well as overall business environment.”
With a strong Return on Equity (ROE) of 47% for the period and a Capital Adequacy Ratio (CAR) of 18.31%, the Bank remains well positioned for future growth. On the back of a strong performance, the Board of Directors were pleased to announce an interim cash dividend of 15.0% (PKR 1.50/- per share) in respect of the three months period ended March 31, 2024.
