Standard Chartered Bank Pakistan maintained its profitable trajectory this year with an all-time high profit of Rs. 19.84 billion in 2022, which is 44.6 percent higher than the previous year.
The bank reported a profit of Rs. 13.72 billion on 2021.
The bank made a record profit before tax of Rs. 50.1 billion, registering an increase of 102 percent year-on-year (YoY) mainly due to higher interest rates and margins from the investment avenues.
Performance was driven by strong income growth, as well as continued cost and risk discipline. Overall revenue grew by 68 percent to deliver a highest-ever top line of Rs. 62.6 billion, with positive contributions from all segments. Despite a high inflationary environment and continuous investments in our infrastructure, operating expenses were well managed through efficiencies and disciplined spending with an increase of 14 percent from last year.
During 2022, the bank contributed around Rs. 38 billion to the national exchequer in lieu of direct income taxes, as an agent of the Federal Board of Revenue (FBR) and on account of FED / Provincial Sales Taxes.
The external environment remains challenging; however, the bank remains 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 its contribution to State Bank’s initiatives. In line with the State Bank’s efforts on financial inclusion, with an 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 Pakistan’s landscape, and helps lift participation through digitization.
Sustainable finance along with digital solutions for clients and their ecosystems are areas of keen focus for the Bank. The Bank continues with its efforts under the ‘Futuremakers by Standard Chartered’ initiative to tackle inequality and promote greater economic inclusion for young people in the community and has also contributed $249,000 for Flood Relief projects in Pakistan in 2022. This amount has worked towards immediate relief and rehabilitation for flood victims, through leading charities in Pakistan to support our communities in need.
Commenting on the results, Rehan Shaikh, Chief Executive Officer, of Standard Chartered Bank (Pakistan) Limited said, “We are pleased to share our results for the year 2022 which clearly reflect strong foundations, enhanced productivity, and good headway towards achieving our strategic priorities. The results give us the confidence that we have the right strategy to deliver real value to our clients, our investors, and the communities where we operate. We are 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”.
He added, “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 the capacity to invest in the many exciting and potentially transformational initiatives as the bank’s pivot to digital continues. Going forward we plan to build on this momentum”.
With a strong Return on Equity (ROE) of 23.7 percent for the year and a Capital Adequacy Ratio (CAR) of 18.68 percent, the Bank remains well-positioned for future growth. On the back of a strong performance, the Board of Directors announced a final cash dividend of 25 percent (Rs. 2.50/- per share) resulting in the highest-ever full-year dividend of 40 percent (Rs. 4.00/- per share).
By shutting down the branches in a city, they will definitely increase profits, clients have to visit far-away branches.