Standard Chartered Bank (Pakistan) Limited delivered a record profit before tax of PKR 38.1 billion for H1’23, registering an increase of 73 per cent year on year. Profit after tax grew by 132% year on year to PKR 18.8 billion during the first half of the year. Performance was driven by strong income growth, as well as continued cost and risk discipline.
Overall revenue grew by 70 per cent to deliver a top-line of PKR 46.6 billion, with positive contributions from all segments. Net Interest Income witnessed strong growth of 150% year on year, driven by proactive balance sheet management, pricing discipline and higher interest rates. Operating expenses were well-managed through efficiencies and disciplined spending, with an increase of 27 per cent from comparative period in line with inflation. Moreover, lower impairments as a result of a prudent risk approach coupled with recoveries of bad debts led to a net release of PKR 12 million in H1’23.
With a diversified product base, the Bank stands well-positioned to cater to the needs of its clients. On the liabilities side, the Bank’s total deposits stand at PKR 726 billion. Current accounts registered a strong growth of PKR 83.7 billion (up 25 per cent) from the start of the year. On the assets side, net advances remained flat, reflecting the Bank’s cautious lending approach and prevailing economic conditions.
Standard Chartered continues to make good progress against its strategic priorities. The global network differentiates the Bank for its clients, bringing forth innovative solutions, product specialisation and structured offshore offerings. In line with the State Bank’s efforts on financial inclusion, with enhanced digital offerings, Standard Chartered is now able to reach more clients across the country and provide them with the convenience of opening accounts as well as subscribing to products and banking services online. Overall, the Bank’s transformation journey stands well-curated, closely aligned with Pakistan’s landscape and helping lift participation through digitisation.
Sustainable finance along with digital solutions for clients and their ecosystem stay as areas of keen focus for the Bank. The Bank continues efforts under ‘Futuremakers by Standard Chartered’ initiative to tackle inequality and promote greater economic inclusion for young people in the community.
Mr. Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited, commented on the results, “Our record performance for H1’23 clearly reflects our resilience, strong foundations and enhanced headway towards achieving our strategic priorities. Our results are also reflective of our commitment to the country and our desire to gain opportunities in the market whilst providing best-in-class banking services to our clients. We continue to become more efficient and innovative operationally while investing in technologies and capabilities of the future. Adoption of new ways of working has been delivering concrete outcomes in terms of productivity and our approach to do business. Our pivot to digital continues with launching market leading platforms and offerings, leveraging Group expertise and through entering breakthrough partnerships.
I am thankful to our clients and business partners for their ongoing trust in our capabilities and to our associates and colleagues for their commitment, passion and hard work in supporting the Bank in its journey.
The external environment remains challenging; however, we remain fully committed to delivering a sustainable growth for our shareholders, bringing the best-in-class services and solutions for our clients and playing our part in the growth story of Pakistan.”
With a strong Return on Equity (ROE) of 40.8% for the period and a Capital Adequacy Ratio (CAR) of 21.1%, 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 40.0% (PKR 4.00/- per share) in respect of the half year ended June 30, 2023.
