Standard Chartered Bank (Pakistan) Limited recorded a profit growth of 132 percent year-on-year to Rs. 18.8 billion during the first half of the year.
Performance was driven by strong income growth, as well as continued cost and risk discipline. The Board of Directors also announced an interim cash dividend of 40.0 percent (Rs. 4.00 per share) in respect of the half year ended June 30, 2023.
The overall revenue grew by 70 percent to deliver a top-line of Rs. 46.6 billion, with positive contributions from all segments. Net Interest Income witnessed strong growth of 150 percent year-on-year, driven by proactive balance sheet management, pricing discipline and higher interest rates.
Operating expenses were well-managed through efficiencies and disciplined spending, with an increase of 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 net release of Rs. 12 million in H1’23. With a diversified product base, the Bank stands well-positioned to cater to the needs of its clients.
On the liabilities side, the bank’s total deposits stood at Rs. 726 billion. Current accounts registered a strong growth of Rs. 83.7 billion (up 25 percent) from the start of the year. On the assets side, net advances remained flat, reflecting the Bank’s cautious lending approach and prevailing economic conditions.
Standard Chartered continues to make good progress against its strategic priorities. The global network differentiates the Bank for its clients, bringing forth innovative solutions, product specialization and structured offshore offerings. In line with the State Bank’s efforts on financial inclusion, with enhanced digital offerings, Standard Chartered is now able to reach more clients across the country and provide them with the convenience of opening accounts as well as subscribing to products and banking services online.
Overall, the Bank’s transformation journey stands well-curated, closely aligned with Pakistan’s landscape, and helps lift participation through digitization.
Sustainable finance along with digital solutions for clients and their ecosystem stay as areas of keen focus for the bank.
Rehan Shaikh, Chief Executive Officer, of Standard Chartered Bank (Pakistan) Limited, commented on the results,
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.
Source: Pro Pakistani