Standard Chartered Bank continued to show strong financial performance as its profit surged to Rs. 11.4 billion by the end of the third quarter of 2019. Last year, it posted profits of Rs. 7.77 billion over the same period.
The bank’s year-on-year profitability showed a growth of 47% in nine months due to a significant increase in interest income, which surged to Rs. 20.5 billion this year from Rs. 13.5 billion in the same period last year.
A strong performance by the bank led to a growth of 56 percent in profit before tax to Rs. 19.8 billion. Overall revenue growth was up by 41 percent as it was posted at Rs. 28.61 billion as compared to Rs. 20.32 billion in the same period last year. Meanwhile, client revenue increased by 32 percent with positive contributions from transaction banking, corporate finance, treasury markets and retail products.
Operating expenses continue to be well managed through operational efficiencies and disciplined spending with a decrease of 5% to stand at Rs. 8.5 billion from comparative period last year.
Momentum in advances (net) continued with 16 percent growth since the start of this year. This was the result of a targeted strategy to build profitable, high quality and sustainable portfolios.
On the liabilities side, the bank’s deposits grew by 6 percent, whereas current and saving accounts grew by 8 percent since the start of this year and are now 95 percent of the deposits base. The optimal funding structure of the balance sheet continues to support the bank’s performance. Earnings per share of the bank increased to Rs. 2.95 from Rs. 2.01.