SCBPL Reports 53% Growth in Profit Before Tax for Q1 2024

SCBPL Reports 53% Growth in Profit Before Tax for Q1 2024

Karachi, April 29, 2024 – Standard Chartered Bank Pakistan Limited (SCBPL) has announced a significant 53% growth in profit before tax (PBT), reaching Rs 24.7 billion for the first quarter of 2024, a robust indicator of the bank’s financial health and operational efficiency.

This notable increase is up from the same period last year, driven by a 44% growth in overall revenue and a 36% increase in client revenue across all segments.

Despite a 22% rise in operating expenses due to inflationary pressures, SCBPL has maintained its position as the industry leader with the lowest cost to income ratio at 17 percent. Additionally, the bank benefitted from lower impairments due to its prudent risk management approach, coupled with recoveries from bad debts. This resulted in a net release of Rs 0.5 billion in the first quarter, compared to a net charge of Rs 0.2 billion in the corresponding period of the previous year.

On the liabilities side, the bank’s total deposits increased by Rs 45 billion to Rs 765 billion. Notably, current accounts saw a healthy 9% growth since the beginning of the year, contributing to 52% of the total deposit base. However, on the asset side, net advances declined by Rs 11 billion, or 5%, since the start of 2024.

SCBPL continues to invest heavily in enhancing its digital capabilities and infrastructure to provide innovative and efficient banking solutions to its clients. “We have made steady progress in further strengthening our control and compliance environment by focusing on our people, culture, and systems,” the bank stated, underscoring its commitment to maintaining high standards of service.

Rehan Shaikh, Chief Executive Officer of Standard Chartered Bank Pakistan Limited, expressed his satisfaction with the bank’s performance. “I am incredibly proud of our team’s hard work and dedication that has led to our outstanding performance in Q1 2024. This achievement reflects our commitment to excellence and our relentless pursuit of success in serving our customers and driving growth,” Shaikh commented.

He continued, “I am 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.”

Looking ahead, Shaikh is optimistic about the future, citing improved economic indicators and a favorable business environment as catalysts for continued growth in 2024.

With a robust Return on Equity (ROE) of 47% for the period and a Capital Adequacy Ratio (CAR) of 18.31%, SCBPL is well-positioned for sustained growth. The strong performance has led the Board of Directors to declare an interim cash dividend of 15.0% (Rs 1.50 per share) for the three-month period ended March 31, 2024, signaling confidence in the bank’s ongoing profitability and stability.

As SCBPL continues to navigate the dynamic banking landscape, its strategic investments in technology and customer service are set to further solidify its market position, promising continued success and shareholder value in the coming quarters.