Highlights:
• Record profit before tax of PKR 49.3 billion; up 29 per cent YoY
• Strong income of PKR 57.9 billion; up 24 per cent YoY
• Robust growth in deposits of PKR 97 billion, up by 14 per cent from start of the year
• Current accounts grew by PKR 36 billion, up 10 per cent during H1’24
• Healthy increase in total assets, growth of 5 per cent from start of the year.
Standard Chartered Bank (Pakistan) Limited, announced its H1 2024 Results today.
The Bank’s Profit before tax grew 29% to PKR 49.3 billion. Overall revenue growth was 24%, whereas client revenue increased by 23% year on year with positive contributions from all segments. While operating expenses increased 22% from comparative period in line with inflation, bank continues to lead the industry with the lowest cost to income ratio of 18%. Moreover, lower impairments as a result of prudent risk approach coupled with recoveries of bad debts led to a net release of PKR 1.8 billion in H1’24 compared to a net release of PKR 12 million in the comparative period.
On the liabilities side, the Bank’s total deposits stand at PKR 817 billion; up by PKR 97 billion, whereas current accounts registered a healthy growth of PKR 36 billion (up 10%) since the start of the year and comprise 49% of the deposit base. On assets side, net advances were lower by PKR 12 billion (5%) since the start of this year.
Commenting on the results, Mr. Rehan Shaikh – Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said:
“Our H1 2024 Results are a testament to the strong business fundamentals and the work we have put in over the last few years to transform and grow our business. The results also demonstrate a clear path towards delivering on our strategic priorities. We continue to become more efficient and innovative operationally while investing in technologies and capabilities of the future to provide best in class banking to our clients. Our pivot to digital continues based on adopting best practices, leveraging the Group expertise and incorporating feedback of our clients in our offerings.
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.
The external environment remains challenging; however, we remain fully committed to manage our risks, capital and liquidity effectively, bringing industry leading services and solutions for our clients and playing our part in the growth story of Pakistan.”
With a strong Return on Equity (ROE) of 44% for the period and a Capital Adequacy Ratio (CAR) of 20%, 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 20.0% (PKR 2.00/- per share) in respect of the six months period ended June 30, 2024. This is in addition to 15.0% (PKR 1.50/- per share) interim cash dividend announced / paid during the period.
