Standard Chartered Bank Pakistan Limited (SCBPL) delivered a strong performance, that has led to a growth of 53 percent in profit before tax to Rs. 24.7 billion. The profit after tax saw an increase of 22.2 percent to Rs. 11.23 billion in the first quarter of 2024 as compared to Rs. 9.19 billion recorded in the same period last year.
Overall revenue grew 44 percent, whereas client revenue increased by 36 percent year on year with positive contributions from all segments. While operating expenses increased 22 percent from the comparative period in line with inflation, bank continues to lead the industry with the lowest cost to income ratio of 17 percent.
Moreover, lower impairments as a result of prudent risk approach coupled with recoveries of bad debts led to a net release of Rs. 0.5 billion in Q1’24 compared to a net charge of Rs. 0.2 billion in the comparative period.
On the liabilities side, the Bank’s total deposits stand at Rs. 765 billion; up by Rs. 45 billion, whereas current accounts registered a healthy growth of Rs. 33 billion up 9 percent since the start of this year, and comprise 52 percent of the deposit base. On asset side, net advances were lower by Rs. 11 billion or 5 percent since the start of this year.
The Bank is investing in its digital capabilities and infrastructure to enhance our clients’ banking experience through the introduction of innovative solutions. The Bank stands well placed to cater for the needs of its clients and will continue its strategy to build a profitable, efficient and sustainable portfolio.
Commenting on the results, Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said, “I am incredibly proud of our team’s hard work and dedication that has led to our outstanding performance in Q1 2024. This achievement reflects our commitment to excellence and our relentless pursuit of success in serving our customers and driving growth”.
“I am thankful to our shareholders, clients and business partners for their ongoing trust in our capabilities, and our associates, staff and colleagues for their keen commitment in supporting the Bank at each step as we bring forth the best-in-class banking experience. We are optimistic about 2024 as we see more growth opportunities opening up with improvement in economic imprints as well as overall business environment.”
With a strong Return on Equity (ROE) of 47 percent for the period and a Capital Adequacy Ratio (CAR) of 18.31 percent, the Bank remains well positioned for future growth. On the back of a strong performance, the Board of Directors were pleased to announce an interim cash dividend of 15.0 percent (Rs. 1.50/- per share) in respect of the three months period ended March 31, 2024.
