Standard Chartered Bank has made its highest ever profit of Rs. 11.2 billion in 2018, showing an outstanding financial performance at a time when majority of the banks recorded a decline in profitability.
Prior to this, the bank’s highest profit was Rs. 10. 5 billion in 2013 which gradually declined in terms of value.
According to the financial results, the UK-based bank recorded a double-digit profit growth of 36 percent when compared with a profit of 2017 which stood at Rs. 8.24 billion. In 2017, the bank recorded a decline of 16 percent in its profitability.
The bank bounced back in 2018 with the gradual increase in interest rates and consistent profit margins from other non-interest avenues.
The interest income grew from Rs. 16.4 billion in 2017 to Rs. 18.8 billion in 2018. The non-interest income increased from Rs. 8.98 billion registered in 2017 to Rs. 9.68 billion in 2018. The bank reduced its expenses marginally from Rs. 11.74 billion of the proceeding year to Rs. 11.29 in the outgoing year.
The bank stated that all businesses have positive momentum in client income with strong growth in underlying drivers. This is evident from a pickup in net advances, which grew by 23 percent during the year. This was the result of a targeted strategy to build profitable, high quality and sustainable portfolios.
Overall revenue growth was 12 percent reaching Rs. 28.5 billion, whereas client revenue with strong contribution from transaction banking, financial markets and retail deposits. In-country operating expenses increased slightly on account of spending, mainly in the bank’s products, services and people to grow the franchise.
On the liabilities side, another milestone was achieved where the bank’s total deposits crossed Rs. 400 billion. Total deposits grew by 13 percent, whereas current and saving accounts registered a growth of 15 percent during the year and are now 94% of the deposits base.
The optimal funding structure of the balance sheet continues to support the bank’s performance.
A final cash dividend of 15 percent (PKR1.50 /- per share) has been recommended by the Board of Directors for approval at the 13th Annual General Meeting of the Bank’s shareholders. This is in addition to 7.5 percent (PKR 0.75/- per share) interim cash dividend paid during the year.
Commenting on the results, Mr. Shazad Dada, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said,
The financial results further demonstrate our commitment to delivering a consistent and sustained performance while leveraging our unique capabilities, digital strength and network presence. This year another historic milestone has been achieved whereby the bank’s total deposits crossed 400 billion.