During the first half of the year, Standard Chartered Bank (Pakistan) Limited saw a 132 percent increase in profit from the previous year, reaching Rs. 18.8 billion.
Strong income growth and ongoing cost and risk management practises both contributed to the performance. Additionally, the Board of Directors declared a 40.0 percent interim cash dividend (Rs. 4.00 per share) for the half year that ended on June 30, 2023.
With positive contributions from all segments, overall revenue increased by 70% to reach a top-line of Rs. 46.6 billion. Due to proactive balance sheet management, strict pricing, and higher interest rates, net interest income increased significantly (by 150%) year over year.
Operating costs were carefully controlled through cost savings and budgetary restraint, increasing by 27% from the prior period to keep up with inflation. A prudent risk approach and lower impairments, along with bad debt recoveries, resulted in a net release of Rs. 12 million in H1’23. The Bank is in a good position to meet the needs of its customers thanks to its wide range of products.
The bank had deposits totaling Rs. 726 billion as liabilities. From the beginning of the year, current accounts saw a significant increase of Rs. 83.7 billion (up 25 percent). On the asset side, net advances were unchanged, reflecting the Bank’s cautious lending policy and the general state of the economy.
With regard to its strategic priorities, Standard Chartered keeps making good progress. The Bank stands out for its clients thanks to its extensive global network, which also enables it to offer structured offshore offerings, specialised products, and creative solutions. With improved digital offerings, Standard Chartered is now able to reach more customers nationwide and give them the convenience of opening accounts as well as subscribing to products and banking services online, in keeping with the State Bank’s efforts on financial inclusion.
Overall, the Bank’s transformation process is well-planned, closely matched to Pakistan’s environment, and supports increasing participation through digitization.
Sustainable finance and digital customer and ecosystem solutions continue to be areas of intense focus for the bank.
The chief executive of Standard Chartered Bank (Pakistan) Limited, Rehan Shaikh, commented on the findings,
“Our record performance for H1’23 clearly reflects our resilience, strong foundations and enhanced headway towards achieving our strategic priorities. Our results are also reflective of our commitment to the country and our desire to gain opportunities in the market whilst providing best-in-class banking services to our clients. 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 and our approach to do business. Our pivot to digital continues with launching market leading platforms and offerings, leveraging Group expertise and through entering breakthrough partnerships. 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.”
