Karachi, February 17, 2023 (PPI-OT):Standard Chartered Bank Pakistan Limited (SCBPL) has delivered a record profit before tax of PKR 50.1 billion, registering an increase of 102 per cent year on year. Performance was driven by strong income growth, as well as continued cost and risk discipline.
Overall revenue grew by 68 per cent to deliver a highest ever top line of PKR 62.6 billion, with positive contributions from all segments. Despite a high inflationary environment and continuous investments in our infrastructure, operating expenses were well managed through efficiencies and disciplined spending with an increase of 14 per cent from last year. Moreover, reversal of Covid-19 general provision, coupled with lower impairments and strong recoveries led to a net release of PKR 1.3 billion during the year against a net charge of PKR 0.5 billion in loan impairments in 2021.
With a diversified product base, the Bank stands well positioned to cater for the needs of its clients. On the liabilities side, the Bank’s total deposits grew by PKR 91.7 billion (up 15%), whereas current and saving accounts increased by PKR 108.7 billion (up 19%) in 2022 and comprise 96% 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 by 8% during the year.
During 2022, the Bank contributed around PKR 38 billion to the national exchequer in lieu of direct income taxes, as an agent of Federal Board of Revenue (FBR) and on account of FED / Provincial Sales Taxes. 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. 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 specialisation and structured offshore offerings.
At all times the Bank strives to maximise the contribution to State Bank’s initiatives. In line with the State Bank’s efforts on financial inclusion, with enhanced digital offering, Standard Chartered is now able to reach more clients across the country and provide them with 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 the Pakistan’s landscape and helping lift participation through digitization.
Sustainable finance along with digital solutions for clients and their ecosystem stay as areas of keen focus for the Bank. The Bank continues with its efforts under the ‘Future makers by Standard Chartered’ initiative to tackle inequality and promote greater economic inclusion for young people in the community, and has also contributed USD 249,000 for Flood Relief projects in Pakistan in 2022. This amount has worked towards immediate relief and rehabilitation for floods victims, through leading charities in Pakistan to support our communities in need.
Commenting on the results, Rehan Shaikh, Chief Executive Officer, 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 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.
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.”
With a strong Return on Equity (ROE) of 23.7% for the year and a Capital Adequacy Ratio (CAR) of 18.68%, the Bank remains well positioned for future growth. On the back of a strong performance, the Board of Directors were pleased to announce a final cash dividend of 25% (PKR 2.50/- per share) resulting in highest ever full year dividend of 40% (PKR 4.00/- per share).
For more information, contact:
Head of Corporate Communications,
Standard Chartered Bank (Pakistan) Limited
1st Floor, New Jubilee Insurance Building,
I.I. Chundrigarh Road, Karachi, Pakistan
Tel: +92-21-32450239
Cell: +92-334-3239399
Email: Farhan.ahmed@sc.com
Website: www.sc.com