Standard Chartered records Rs24.8 billion profit before tax in 2021

KARACHI: The profit before tax of Standard Chartered Bank Pakistan Limited (SCBPL) recorded a growth of 5 per cent to Rs24.8 billion in 2021, compared with Rs23.6 billion in 2020.

Performance was driven by strong balance sheet growth, continued productivity improvements and risk discipline.

The bank’s revenue was lower by Rs3.5 billion primarily due to sharp reduction in the interest rates in the second quarter of 2020 and market volatility.

SCBPL Chief Executive Officer Rehan Shaikh said: “I am pleased to announce our results for the year 2021. They demonstrate strong foundations and a clear path towards delivering on our strategic priorities.”

“The new ways of working introduced by the bank are delivering concreate outcomes in terms of productivity and our approach to business. Our pivot to digital continues to result in greater efficiency and growth in underlying drivers, while positioning the bank for the future,” he added.

“As a Bank we have continued to make a mark on sustainability and impact through the execution of several sustainable finance transactions, reduction in carbon footprint and efforts to tackle inequality and promote greater economic inclusion through Futuremakers by Standard Chartered.”

“We stand fully committed to play our part in the growth story of Pakistan whilst providing best in class banking to our clients,” Shaikh concluded.

Despite the investment in infrastructure and inflationary pressures, administrative costs continue to be well managed through operational efficiencies and disciplined spending resulting in a decline of 3 per cent year-on-year.

Moreover, strong recoveries and lower impairments as a result of prudent risk approach led to a net charge of Rs0.5 billion, compared with a net charge of Rs4.9 billion in the comparative period.

All businesses have positive momentum with strong growth in underlying drivers. The pickup in net advances have grown by Rs56 billion, up 31 per cent since the start of the year, as a result of targeted strategy to build profitable, high quality and sustainable portfolios.

On the liabilities side, the bank’s total deposits showed a growth of 13 per cent to Rs70 billion, whereas current and saving accounts recorded an increase of 12 per cent to Rs63 billion since the start of the year and comprise 92 per cent of the deposit base.

The bank continued to make good progress against its strategic priorities. The global network differentiates the bank for its clients, bringing forth innovative solutions, product specialisation and structured offshore offerings.

The Standard Chartered strives to contribute to the State Bank of Pakistan (SBP) initiatives on promoting housing finance and is consistently ranked amongst the top three. As of now over Rs3 billion have been dispersed under the Mera Pakistan Mera Ghar scheme.

The SCBPL is also amongst the top five contributors towards the Roshan Digital initiative and channelled remittances of over $320 million since inception and contributed $270 million to the investments in Naya Pakistan Certificate (NPC).

The bank is the first in the industry to offer Raast payment services to clients through all three channels i.e., Over the Counter, Mobile App and Online Banking.

Standard Chartered has continued to invest in technological advancements and digital infrastructure to provide further convenience and cyber security to client’s digital transactions.