Standard Chartered Bank (Pakistan) Limited announced its financial results for the half-year that ended on June 30th, 2021.
According to the financial results, the bank’s profit has decreased to Rs. 6.78 billion from Rs. 9.85 billion recorded in the corresponding period of the previous year, showing a massive decline of over Rs. 3 billion or 31% in profitability.
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The profit before tax of the bank was Rs. 12.0 billion, and the revenue was lower than it was last year primarily due to a sharp reduction in the interest rates in Q2’20, subdued economic activity, and market volatility that impacted the foreign exchange income, revaluation income on derivatives, and the gain on sale of securities.
Administrative costs continue to be well managed through operational efficiencies and disciplined spending, with a reduction of one percent as compared to the same period last year.
The bank’s earnings per share were declined to Rs. 0.92 from Rs. 1.75 during the half year.
Moreover, strong recoveries of bad debts and lower impairments due to a prudent risk approach led to a net release of Rs. 0.7 billion in H’21.
All businesses have positive momentum with strong growth in underlying drivers. This is evident from the pickup in the net advances that have grown by Rs. 39 billion or 22 percent since the start of this year. This was a result of a targeted strategy to build a profitable, high-quality, and sustainable portfolio. With a diversified product base, Standard Chartered Bank is well-positioned to cater to the needs of its clients.
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On the liabilities side, the bank’s total deposits grew by Rs. 32 billion (six percent), whereas the current and saving accounts grew by Rs. 30 billion since the start of this year, and comprise 93 percent of the deposit base.
Standard Chartered Bank continues to pay dividends as its Board of Directors has declared an interim cash dividend of 12.50 percent (Rs. 1.25 per share) in respect of the half-year that ended on 30 June 2021.
