Standard Chartered Pakistan Records 115% Profit Growth in 2023

Standard Chartered Pakistan Records 115% Profit Growth in 2023

Karachi, February 23, 2024 – Standard Chartered Bank (Pakistan) Limited (SCBL) has reported an extraordinary 115 percent surge in net profit for the calendar year 2023, according to its financial statement for the year ending December 31, 2023.

The bank disclosed an after-tax profit of Rs 42.62 billion compared to Rs 19.84 billion in the previous year, demonstrating a robust financial performance.

Earnings per share (EPS) for the year 2023 reached Rs 11.01, a significant increase from Rs 5.13 in the preceding year. The bank’s outstanding profit before tax of PKR 89.2 billion, marking a substantial 78 percent increase from the previous year, contributed to this exceptional growth.

Overall revenue witnessed a remarkable 72 percent growth, and client revenue specifically saw a surge of 78 percent year on year, with positive contributions from all segments. Operating expenses increased by 29 percent, aligning with prevalent inflationary trends. A prudent risk approach, coupled with the recovery of bad debts, resulted in a net release of PKR 163 million in loan impairments during the year.

On the asset side, the bank achieved a significant milestone by surpassing PKR 1.0 trillion in total assets, an 8 percent increase from the beginning of the year. Liabilities-wise, the bank’s total deposits stand at PKR 720 billion, with current accounts experiencing a healthy growth of PKR 34 billion (up 10 percent) since the start of the year, constituting 50 percent of the deposit base.

In 2023, the bank made substantial contributions of around PKR 63.5 billion to the national exchequer in the form of direct income taxes and as a withholding agent for Federal and Provincial Tax Authorities.

With an impressive Return on Equity (ROE) of 46.4 percent for the year and a robust Capital Adequacy Ratio (CAR) of 20.1 percent, the bank is well-positioned for future growth. The Board of Directors has recommended a final cash dividend of 25 percent (PKR 2.50 per share), in addition to the interim cash dividend of 65 percent (PKR 6.50 per share) announced during the year. This brings the total dividend pay-out to a record high of 90 percent (PKR 9.00 per share).

Rehan Shaikh, the Chief Executive Officer of Standard Chartered Bank (Pakistan) Limited, expressed pride in the exceptional performance, emphasizing the transformative efforts of the past few years. He highlighted the bank’s commitment to sustainable growth, innovation, and contributing positively to Pakistan’s progress despite the challenging external environment. The focus remains on delivering higher returns, driving income growth, and enhancing operational leverage through simplification and digitization initiatives.