Standard Chartered Bank has made a record all-time high profit of Rs. 16 billion in 2019.
The bank witnessed 43 percent year-on-year growth in 2019 compared to profits from last year.
A strong and diversified business performance drove an all-time high income of Rs. 39.1 billion, a growth of 37 percent YoY. Operating expenses were well controlled with an increase of only 2per cent YoY, well below the country inflation rate, resulting in all-time low cost to income ratio of 30 percent.
All businesses had positive momentum in client income which grew 31 percent year on year with strong growth in underlying drivers. Momentum in advances (net) continues with 29 percent growth since the start of the year. This was the result of a targeted strategy to leverage brand, client relationships and strong global network in building profitable and high-quality portfolios.
The bank continued to maintain its leadership in low cost deposits with CASA to Deposits ratio of 93 percent despite strong competition. Total deposits recorded a growth of 10 percent, with CASA growing by 8 percent in 2019.
During 2019, the bank contributed around Rs. 18.6 billion to the national exchequer in lieu of direct income taxes, as an agent of Federal Board of Revenue (FBR) and on account of FED / Provincial Sales Taxes.
For the year 2019, the board of directors recommended a final cash dividend of 17.5 percent (Rs 1.75 per share). This is in addition to the 12.5 percent (Rs. 1.25 per share) interim cash dividend announced during the year; thereby taking the total dividend pay-out to a record high of 30 percent (Rs. 3.00 per share).
Commenting on the results, Mr. Shazad Dada, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said,
“I am delighted to announce that the Bank has performed exceptionally well and has delivered its highest ever profit. 2019 has been a significant year, with developments that have contributed directly to the growth of the country franchise. These results are testament of our commitment to delivering a consistent and continued performance. Having strengthened our foundations on controls and conduct, we recognise the importance of sustained growth with a focus on income whilst strongly monitoring cost and prudent risk management. Our digital journey is well on-track having executed over 21 million electronic transactions for our clients while ensuring a seamless client experience throughout all our segments. Although the external environment remains challenging, we are committed to raising the bar on our performance whilst ensuring that our clients’ needs are at the heart of everything we do.”
Standard Chartered Bank (Pakistan) Ltd. is the oldest and largest international bank in Pakistan. It is also the first international bank to be awarded Islamic banking licence and was the first to open an Islamic banking branch.
The bank is listed on the Pakistan Stock Exchange (PSX) and was assigned a rating of AAA / A1+ by PACRA. It employs more than 2,800 people in Pakistan and has a network of 278 touch points (61 branches, 168 ATMs, 29 CDMs and 20 CDKs) across 11 cities.