Standard Chartered Bank half-year profit falls 31%

KARACHI: The Standard Chartered Bank (Pakistan) Limited has announced 31 per cent decline in its net profit for the half-year ended June 30, 2021, a bourse filing said on Thursday.

The bank declared Rs6.78 billion profit-after-tax for the half-year (January–June) 2021, compared with Rs9.85 billion during the corresponding period last year.

The bank in its financial report attributed the fall in profits to sharp reduction in interest rates. Further, subdued economic activity and market volatility impacted the foreign exchange income of the bank.

Besides, revaluation income on derivatives and gain on sale of securities have also adversely impacted the revenues.

The bank said despite uncertainties surrounding the Covid-19, the financial performance posted a profit-before-tax of Rs12 billion, compared with Rs16.3 billion in the corresponding period last year.

The administrative costs continue to be well-managed through operational efficiencies and disciplined spending with a reduction of one per cent, compared with the same period last year.

Moreover, strong recoveries of bad debts, coupled with lower impairments as a result of prudent risk approach led to a net release of Rs0.7 billion in the first-half of 2021, compared with the charges of Rs1.3 billion in the comparative period.

The bank said all businesses have positive momentum with strong growth in underlying drivers. This is evident from pickup in net advances, which grew 22 per cent since the start of this year.

On the liabilities side, the bank’s total deposits grew Rs32 billion, whereas the current and saving accounts grew Rs30 billion, up 6 per cent since the start of this year and comprise 93 per cent of the deposit base.

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