Highlights:
• Record quarterly profit before Tax of PKR 11.8 billion, up 101 per cent year on year
• Overall revenue of PKR 14.3 billion, growth of 72 percent
• Strong growth in net advances of PKR 17.8 billion, up by 8 per cent
• Healthy increase in deposits of PKR 23.2 billion, up by 4 per cent
• Cost discipline continues with an increase of 8 per cent, against double digit inflation
• Prudent risk approach / strong recoveries delivering impairment reversal of PKR 0.7 billion
Standard Chartered Bank Pakistan Limited (SCBPL) delivered a record performance in first quarter of 2022, leading to a growth of 101% in profit before tax to PKR 11.8 billion. Profit after tax grew by 119% year on year to PKR 7.1 billion
Overall revenue grew by 72% to deliver the highest ever quarterly revenue of PKR 14.3 billion. Net interest income grew by 36% year on year, primarily driven by volume upside from strong balance sheet growth. Non funded income recorded a growth of 167%, impelled by strong performance in FX, derivatives and securities trading. Operating expenses continue to be well managed through operational efficiencies and disciplined spending with an increase of 8% from comparative period last year. Moreover, robust recoveries of bad debts, coupled with prudent risk approach led to a net release of PKR 0.7 billion in Q1’22 compared to a net release of PKR 0.6 billion in the comparative period.
All businesses have positive momentum with strong growth in underlying drivers. This is evident from pickup in net advances, which have grown by PKR 17.8 billion (up 8%) since the start of this year. This was a result of targeted strategy to build profitable, high quality and sustainable portfolios. With a diversified product base, the Bank is well positioned to cater for the needs of its clients. On the liabilities side, the Bank’s total deposits grew by PKR 23.2 billion (up 4%), whereas current and saving accounts grew by PKR 27.8 billion (up 5%) since the start of this year and comprise 93% of the deposit base.
The Bank continues 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 Bank strives to maximise the contribution to SBP initiatives on promoting housing finance and is consistently ranked amongst the top institutions. As of now over PKR 4 billion have been dispersed under Mera Pakistan Mera Ghar scheme. SCBPL is also amongst the top five contributors towards the Roshan Digital initiative and channelled remittances of over USD 350 million since inception and contributed USD 300 million to the investments in Naya Pakistan Certificate (NPC).
Standard Chartered has continued to invest in technological advancements and digital infrastructure to provide further convenience and cyber security to clients. With the launch of its digital onboarding proposition, Standard Chartered is now able to reach more clients and provide them with convenience of opening accounts as well as subscribing to products and banking services online. Plans are in place to offer host of other products and services that bring more accessibility to the clients and overall bank’s transformation journey stands well-curated. The Bank also continues its efforts on the sustainability and impact front; and to tackle inequality and promote greater economic inclusion through Futuremakers by Standard Chartered.
Commenting on the results, Mr. Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said, “Our results for the first quarter of 2022 have set the tone for the year and we remain optimistic and plan to build on this momentum going forward.
Our results demonstrate strong foundations and a clear path towards delivering on our strategic priorities. They are also reflective of our commitment to the country and our desire to capture opportunities in the market whilst providing best in class banking to our clients. We continue to become more efficient and innovative operationally while investing in technologies and capabilities of the future. 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 extremely thankful to our shareholders, clients and business partners for their ongoing trust in our capabilities, and our associates, staff and colleagues for their keen commitment in supporting the Bank at each step as we bring forth the best-in-class banking experience.”
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