Islamabad: Standard Chartered Bank Pakistan Limited (SCBPL) posted a strong performance, driven by a 53 percent increase in pre-tax profit to PKR 24.7 billion.
Total revenue grew 44%, while customer revenue grew 36% year-on-year with positive contributions from all segments. Although operating expenses rising 22% year-on-year in line with inflation, the bank leads the industry with the lowest cost margin of 17%. In addition, the lower valuation as a result of the prudent risk-adjusted approach resulted in a net charge of PKR 0.5 billion compared to a net charge of PKR 0.2 billion compared to the write-off of bad loans.
On the Liabilities side, the Bank’s total deposits are PKR 765 billion; This increased by PKR 45 billion, while current accounts registered healthy growth of PKR 33 billion since the beginning of this year, accounting for 52 percent of the deposit base. On the active side, the net growth since the beginning of this year is PKR 11 billion or 5% lower.
Banks are investing in their digital capabilities and infrastructure to improve their customers’ banking experience by introducing innovative solutions. We have made steady progress in strengthening the control and performance of our environment by focusing on our people, culture and system. The bank is well placed to meet the needs of its customers and will continue its strategy of building a profitable, efficient and sustainable portfolio.
Commenting on the results, Mr. Rehan Shih, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said, “I am extremely proud that the hard work and dedication of our team led to an outstanding performance in Q1 2024. Our success reflects our commitment to excellence and continued success in serving customers and driving growth.
I am grateful to our shareholders, customers and business partners for their continued confidence in our capabilities and their commitment to support the Bank every step of the way as we deliver the best banking experience for our colleagues, employees and partners. We look forward to 2024 when we see more growth opportunities opening up as the economic footprint and overall business environment improves. “
With a return on equity (ROE) of 47% and a capital adequacy ratio (CAR) of 18.31% during the period, the bank remains well positioned for future growth. On the back of strong performance, the Board of Directors declared an interim cash dividend of 15.0% (PKR 1.50/- per share) for the three-month period ending 31 March 2024.
