Standard Chartered Bank posts record profit of Rs50.1 billion

KARACHI: The Standard Chartered Bank Pakistan Limited (SCBPL) has registered a record profit-before-tax of Rs50.1 billion, registering a growth of 102 per cent on a year-on-year basis, a statement said on Friday.

The performance of the bank was driven by strong income growth, as well as continued cost and risk discipline.

The overall revenue of SCBPL grew 68 per cent to deliver a highest-ever top-line of Rs62.6 billion, with the positive contributions from all the segments.

Despite a high inflationary environment and continuous investment in the infrastructure, operating expenses were well managed through efficiencies and disciplined spending with an increase of 14 per cent, compared with the last year.

Moreover, reversal of the Covid-19 general provision, coupled with the lower impairments and strong recoveries led to a net release of Rs1.3 billion during the year against a net charge of Rs0.5 billion in loan impairments in 2021.

With a diversified product base, the bank is well-positioned to cater to the needs of its clients. On the liabilities side, its total deposits grew Rs91.7 billion (up 15 per cent), whereas the current and saving accounts increased Rs108.7 billion (up 19 per cent) in 2022 and comprise 96 per cent of the deposit base.

The bank continues to monitor the portfolio in the prevailing economic environment as part of its strategy to build a profitable, efficient and sustainable business. As a result, advances declined 8 per cent during the year.

During 2022, the bank contributed around Rs38 billion to the national exchequer in lieu of direct income tax, as an agent of the Federal Board of Revenue (FBR) and on account of the federal excise duty and provincial sales tax.

The external environment remains challenging; however, the bank remains fully committed to delivering a sustainable growth for our shareholders, bringing the best-in-class services and solutions for our clients and playing our part in the growth story of Pakistan.

The Standard Chartered Bank continues to make good progress against its strategic priorities. The global network differentiates the bank for its clients, bring forth the innovative solutions, product specialisation and structured offshore offerings.

At all times, the bank strives to maximise the contribution to the State Bank’s initiatives. In line with the State Bank’s efforts on financial inclusion, with enhanced digital offering, the Standard Chartered Bank is now able to reach more clients across the country and provide them with convenience of opening accounts, as well as subscribing to the products and banking services online.

Overall, the bank’s transformation journey stands well-curated, closely aligned with the Pakistan’s landscape and helping lift participation through digitalisation.

Sustainable finance along with the digital solutions for clients and their ecosystem stay as the areas of keen focus for the bank.

The bank continues with its efforts under the “Futuremakers by Standard Chartered” initiative to tackle inequality and promote greater economic inclusion for the young people in the community and has also contributed $249,000 for the flood relief projects in Pakistan in 2022.

This amount has worked towards immediate relief and rehabilitation of the floods victims through leading charities in Pakistan and to support our communities in need.

Rehan Shaikh, chief executive officer of the Standard Chartered Bank (Pakistan) Limited, said: “We are pleased to share our results for the year 2022, which clearly reflect strong foundations, enhanced productivity and good headway towards achieving our strategic priorities. The results give us the confidence that we have the right strategy to deliver real value to our clients, our investors and the communities where we operate.”

“We are thankful to our clients and the 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,” he added.

“We are investing heavily in our people, giving colleagues the skills, they need to succeed, bringing in expertise in critical areas and evolving to a more innovative and agile operating model, as we strive to drive innovation and increase our operational efficiency further. This operational leverage allows us to create capacity to invest in the many exciting and potentially transformational initiatives as the bank’s pivot to digital continues. Going forward, we plan to build on this momentum,” he remarked.

With a strong return on equity (ROE) of 23.7 per cent for the year and a capital adequacy ratio (CAR) of 18.68 per cent, the bank remains well-positioned for future growth.

On the back of a strong performance, the board of directors announced a final cash dividend of 25 per cent (Rs2.50/share), resulting in the highest-ever full-year dividend of 40 per cent (Rs4/share).

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