Standard Chartered Bank Pakistan showed a remarkable financial performance in the third quarter of 2018, and showed a handsome double-digit growth in its profitability of 23 percent in the first nine months of the current year compared to the previous year.
According to the balance sheet, the bank managed to book a profit of Rs. 7.773 billion by the end of September this year, which is Rs. 1.45 billion higher than the corresponding period of last year where the bank’s profit stood at Rs.6.32 billion.
The third quarter of the bank proved to be a very successful one this year as the discount rates went up along with the interest rates and some other products.
In the quarter of July to September 2018, the bank made a 100 growth in its profit from last year. This quarter’s stood at Rs. 2.585 billion which improved the overall balance sheet of the bank.
The bank’s interest income showed a double-digit growth of 16 percent in the nine months of 2018, reaching Rs. 14.90 billion, up from Rs. 12.85 billion of the previous year. The non-interest income also surged to Rs. 6.37 billion from Rs. 6.20 billion in 2017.
It is pertinent to mention here that the bank recorded a solid recovery from last year, which was steady and slow but a sustainable despite the challenges and competition within the banking industry.
In 2017, the bank closed its business year with a drop of 16 percent in profits. In the first and second quarter, the bank reported profit growth of 2.4 percent and 3 percent respectively.
All businesses have positive momentum in client income with strong growth in underlying drivers. This is evident from a pickup in net advances, which have grown by 8 percent since the start of this year. With a diversified product base, the bank is well positioned to cater to the needs of its clients.
On the liabilities side, the bank’s total deposits grew by 9 percent, whereas current and saving accounts grew by 10 percent since the start of this year. The continuous increase in low-cost deposits has significantly supported the bank’s performance with current and savings accounts comprising 93 percent of the deposit base.
The bank’s earning per share improved to 2.01 from 1.63.
The bank also achieved a benchmark crossing Rs. 500 billion in its assets’ value. It reduced its branch network to 93 in just 11 stations but enhanced its efficiency in its targeted market.
Shazad Dada, Chief Executive Officer, Standard Chartered Bank said, “The Bank continues to perform well in 2018. Our client-focused approach in unparalleled as we invest in our digital and advisory capabilities. We are becoming more innovative and are ever more responsive to our clients’ needs. We have also made steady progress in further strengthening our control and compliance environment. We are well capitalized, highly liquid and are becoming stronger, leaner and more efficient.”
Despite good growth they are closing their many branches