Standard Chartered Bank Pakistan Limited (SCBPL) reported a profit after tax of Rs. 14.24 billion in the first nine months that ended on September 30, 2022, registering an increase of 44 percent year on year as compared to Rs. 9.91 billion recorded in the same period last year.
Performance was driven by strong income growth, as well as continued cost and risk discipline.
Overall revenue grew by 70 percent to deliver a top-line of Rs. 45.1 billion, with positive contributions from all segments. Despite a high inflationary environment and continuous investments in our infrastructure, operating expenses continue to be well managed through efficiencies and disciplined spending with an increase of 12 percent from the same period last year.
Moreover, the reversal of Covid-19 general provision, coupled with lower impairments and strong recoveries led to a net release of Rs. 1.5 billion during the period against a net release of Rs. 0.8 billion in loan impairments in the comparative period.
With a diversified product base, the Bank stands well-positioned to cater for the needs of its clients. On the liabilities side, the Bank’s total deposits grew by Rs. 108.0 billion (up 17%), whereas current and saving accounts increased by Rs. 119.0 billion (up 21%) since the start of this year and comprise 95% of the deposit base. Advances declined marginally since the start of this year and the Bank continues to monitor the portfolio in the prevailing economic environment as part of its strategy to build a profitable, efficient, and sustainable business.
The external environment remains challenging; however, we remain fully committed to delivering sustainable growth for our shareholders, bringing the best-in-class services and solutions for our clients and playing our part in the growth story of Pakistan. Standard Chartered continues to make good progress against its strategic priorities. The global network differentiates the Bank for its clients, bringing forth innovative solutions, product specialization and structured offshore offerings. At all times the Bank strives to maximize the contribution to State Bank’s initiatives.
In line with the State Bank’s efforts on financial inclusion, with the enhanced digital offering, Standard Chartered is now able to reach more clients across the country and provide them with the convenience of opening accounts as well as subscribing to products and banking services online. Overall, the Bank’s transformation journey stands well-curated, closely aligned with the Pakistan’s landscape and helping lift participation through digitization.
Sustainable finance along with digital solutions for clients and their ecosystem stay as areas of keen focus for the Bank. The Bank continues efforts under its initiative ‘Futuremakers by Standard Chartered’ initiative to tackle inequality and promote greater economic inclusion for young people in the community. Standard Chartered has also contributed towards emergency relief and rehabilitation of communities impacted by the recent floods that have caused devastation in Pakistan.
Commenting on the results, Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said,
I am pleased to share our results for the first three quarters of 2022 which clearly reflect strong foundations, enhanced productivity and good headway towards achieving our strategic priorities. The results give me the confidence that we have the right strategy to deliver real value to our clients, our investors and the communities where we operate. I am thankful to our clients and business partners for their ongoing trust in our capabilities and to our associates and colleagues for their commitment, passion and hard work in supporting the Bank in its journey. We are investing heavily in our people, giving colleagues the skills they need to succeed, bringing in expertise in critical areas and evolving to a more innovative and agile operating model, as we strive to drive innovation and increase our operational efficiency further. This operational leverage allows us to create capacity to invest in the many exciting and potentially transformational initiatives as the Bank’s pivot to digital continues. The external environment remains challenging; however, we remain fully committed to delivering sustainable growth for our shareholders, bringing the best in class services and solutions for our clients and playing our part in the growth story of Pakistan.”
With a strong Return on Equity (ROE) of 23.5% for the period and a Capital Adequacy Ratio (CAR) of 17.7%, the Bank remains well-positioned for future growth.
