Standard Chartered Bank Pakistan delivered a record profit before tax of Rs. 63.0 billion for the nine months ended 30 September 2023, registering an increase of 73 percent year on year.
Profit after tax grew by 121 percent year on year to Rs. 31.4 billion during nine months of the year. The performance was driven by strong income growth, as well as continued cost and risk discipline.
Overall revenue for the Bank grew by 70 percent to deliver a top-line of Rs. 76.9 billion, with positive contributions from all segments. The Net Interest Income for Standard Chartered witnessed a strong growth of 131 percent YoY, driven by proactive balance sheet management, pricing discipline, and higher interest rates.
Operating expenses increased 27 percent from the comparative period, in line with inflation. Moreover, lower impairments as a result of a prudent risk approach coupled with recoveries of bad debts led to a benign charge of Rs. 615 million for the period.
On the liabilities side, the Bank’s total deposits stood at Rs. 725 billion. Current accounts registered a strong growth of Rs. 68 billion (up 21 percent) from the start of the year. On the assets side, net advances registered a growth of Rs. 18 billion (up 9 percent) since the start of this year.
With a strong Return on Equity (ROE) of 46.3 percent for the period and a Capital Adequacy Ratio (CAR) of 20.4 percent, the Bank remains well-positioned for future growth. On the back of a strong performance, the Board of Directors was pleased to announce an interim cash dividend of 25.0 percent (Rs. 2.50/- per share) in respect of the nine-month period ended September 30, 2023. This is in addition to the 40.0 percent (Rs. 4.00/- per share) interim cash dividend announced during half year ended June 30, 2023.
Rehan Shaikh, Chief Executive Officer, said, “I am pleased to share our 3rd quarter results reflecting our resilience, strong foundations, continued transformation and enhanced headway towards achieving our strategic priorities. The results also underpin our commitment to the country and our desire to gain opportunities in the market whilst supporting our clients by providing deep expertise to help meet their ambitions. Our focus remains on leveraging our network to facilitate our clients in the various trade corridors as well as building momentum in Sovereign, Multinational and Local Corporates space. Within consumer banking, we are deepening the opportunity in the Affluent segment while digitising our mass proposition”.
He further stated, “We continue to become more efficient and innovative operationally while investing in technologies and capabilities of the future. Adoption of new ways of working has been delivering concrete outcomes in terms of productivity, staff wellbeing and our approach to do business. I am thankful to our clients and business partners for their ongoing trust in our abilities and to our associates and colleagues for their commitment, passion and hard work in supporting the Bank in its journey. The external environment remains challenging; however, we remain fully committed to delivering a 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”.