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  • Standard Chartered Pakistan registers 84% growth in PBT during 1HCY22

    Standard Chartered Pakistan registers 84% growth in PBT during 1HCY22

    KARACHI: Standard Chartered Bank Limited (SCBPL) announced the record half-yearly profit before tax (PBT) of Rs22 billion, showing an increase of 84 per cent, according to a statement released on Friday.

    Overall revenue grew by 60 per cent to deliver highest ever top-line of Rs27.4 billion, with positive contributions from all segments.

    Operating expenses continue to be well managed through operational efficiencies and disciplined spending with an increase of 11 per cent from the same period last year.

    Moreover, reversal of Covid-19 general provision, coupled with lower impairments and strong recoveries led to a net release of Rs1.3 billion in H1CY22 against a net release of Rs0.7 billion in loan impairments in the comparative period.

    READ MORE: National Bank announces 28% fall in net profit for 1HCY22

    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 Rs48.0 billion showing an increase of 8 per cent, whereas current and saving accounts increased by Rs58.0 billion showing an increase of 10 per cent since the start of this year and comprise 94 per cent of the deposit base.

    On the other hand, advances increased by 2 per cent during first half of the year and 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.

    The external environment remains challenging, however we remain 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.

    READ MORE: Allied Bank’s tax payment grows 121% in 1HCY22

    The bank strives to maximise the contribution to State Bank’s initiatives on promoting housing finance and is consistently ranked amongst the top institutions.

    As of now over Rs4.9 billion have been dispersed under Mera Pakistan Mera Ghar scheme. SCBPL has been a major contributor towards the Roshan Digital Account (RDA) initiative and has channelled remittances of over $367 million into Pakistan since inception and contributed USD 320 million to the investments in Naya Pakistan Certificate (NPC).

    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.

    READ MORE: MCB Bank registers 71% decline in profit for 2QCY22

    SCBPL continues its efforts with the global initiative Futuremakers by Standard Chartered in Pakistan to tackle inequality and promote greater economic inclusion for young people in the community.

    Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited commented: “I am pleased to share our record performance for the first half of 2022, which clearly reflect strong foundations, enhanced productivity and good headway towards achieving our strategic priorities.”

    He also said: “The results give me the confidence that we have the right strategy to deliver real value to our clients, our investors and the communities where we operate.

    “I am thankful to our clients and business partners for their ongoing trust in our capabilities and to our associates, colleagues and staff for their resilience, dedication and hard work in delivering such outstanding results. The Bank stands committed to their growth and well-being.

    READ MORE: Meezan Bank posts 36% growth in half year profit

    “While 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, we intend 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,” he added.

    With a strong Return on Equity (ROE) of 20.2 per cent for 1HCY22 and a Capital Adequacy Ratio (CAR) of 15.3 per cent, the bank remains well positioned for future growth.

    On the back of a strong performance, the board of directors were pleased to announce highest ever interim cash dividend of 15 per cent (Rs1.50 per share) in respect of the half year ended June 30, 2022.

  • Standard Chartered facilitated by BenchMatrix

    Standard Chartered facilitated by BenchMatrix

    KARACHI: BenchMatrix has successfully facilitated Standard Chartered Bank Pakistan (SCBPL) in the installation and implementation of its RiskNucleus GRC, with the goal to digitize the Bank’s compliance risk management processes.

    The implementation of this comprehensive solution will assist Standard Chartered in holistically managing compliance processes and ensure regulatory compliance. The solution is a well-integrated system that allows risk managers to effectively assess and monitor identified risks and controls within the organization. The solution includes modules for management of regulatory change, risk assessment, regulatory correspondence, review observations and overall consolidated risk calculation, while enabling cross modular linkages and comprehensive functionalities.

    Commenting at the occasion Rehan Shaikh, Chief Executive Officer, Standard Chartered Pakistan said, “Our unwavering focus on managing risk and continued investment in building controls in an era of digitization and automation has led us to actualize this deployment. We are hopeful that the implementation of this comprehensive yet simplified solution will help the Bank grow its business sustainably, whilst effectively managing compliance processes and regulatory expectations.

    On the occasion Taimur Kaleem, CEO of BenchMatrix, Pakistan said, “I would like to congratulate both teams on successful completion of the project. RiskNucleus GRC will help to reduce the overall cost of compliance, fulfil regulatory requirements and eradicate operational gaps through automation of the Bank’s robust compliance framework.”

    RiskNucleus GRC solution is a web-based, modular fully configurable and integrated application that streamlines the process of Governance, Risk and Compliance, according to the organization’s needs.

    BenchMatrix is now one of the leading solution provider for Governance, Risk & Compliance solution, serving almost 60+ clients globally with offices in Canada, KSA, UAE, Bahrain, Kuwait & Pakistan. It implements all its products with efficiency to ensure accelerated deployment timelines, owing to a vastly experienced staff in both, banking operations and project implementations globally.

  • SCBPL launches project to empower youth with disabilities

    SCBPL launches project to empower youth with disabilities

    KARACHI: Standard Chartered Bank Private Ltd. (SCBPL) has launched a project for economic empowerment of youth with disabilities.

    The Futuremakers Inclusive Employability project which focuses on economic empowerment of youth with disabilities. This project is part of ‘Futuremakers by Standard Chartered’ – the Bank’s global initiative to tackle inequality, by promoting economic-inclusion for young people, including those affected by COVID-19.

    READ MORE: Standard Chartered Bank declares Rs13.72 bn as annual profit

    Through this programme the bank will be reaching out to targeted beneficiaries, including more than 480 youth with disabilities of which 20 per cent will be visually impaired. Expected project outcomes include 20 per cent of the project beneficiaries transitioning into formal employment (including self-employment) and at least 40 per cent of beneficiaries will be females, because currently their participation in the Pakistani labour-force is extremely low.

    Commenting at the occasion Rehan Shaikh, Chief Executive Officer, Standard Chartered Pakistan said: “Supporting underprivileged and differently abled youth and helping them learn, earn and grow is a key component of our Futuremakers strategy.

    READ MORE: Standard Chartered Bank declares 18pc fall in annual profit

    “The launch of the Futuremakers Inclusive Employability project is aimed at training youth, especially people with disabilities, to join the workforce in order for them to realise their full potential. This project is directly aligned with our vision to drive commerce and prosperity through our unique diversity, while we reinforce our brand promise – ‘Here for good’.

    “I am very optimistic that the Bank is playing a role in bridging the socio-economic inequality of youth, and especially women living with disabilities. Through this programme we strive to becomes a catalyst of change and create lasting impact not only for those participating but also for the future generations.”

    Funded by Standard Chartered Foundation, the project is delivered with support from Sightsavers. The project is based on a strategic partnership that builds on a successful pilot of how labour market systems can adapt to be more inclusive of people with disabilities in formal employment.

    READ MORE: Standard Chartered Pakistan announces 42.5% growth in after tax profit

    The project will focus on four core pathways: Pathway-1 will build the employment readiness and self-confidence of jobseekers with disabilities. Pathway-2 will build the disability confidence of employers. Pathway-3 will strengthen the supporting functions of the labour market and Pathway-4 will influence employment regulatory frameworks.

    Sightsavers will implement this project in partnerships with a local implementing partner – Civil Society Human and Institutional Development Programme (CHIP). Other collaborations include: Deaftawk, Community Based Inclusive Development Network (CBIDN) and the National Forum of Women with Disabilities (NFWWD).

    Country Director of Sightsavers, Munazza Gillani, stated that: “It is a proud moment for us to collaborate with Standard Chartered’s Futuremakers initiative that focuses on economic empowerment of youth with disabilities in Pakistan, including the visually impaired.

    READ MORE: ADA to improve women’s financial inclusion

    “The project will build on learning from Sightsavers’ Inclusion Works programme, using existing resources that we have developed (including the Markets for the Poori (M4P) methodology; Accenture’s Skills-to-Succeed Learning Exchange and the Inclusive Futures’ Disability Employers’ toolkit.

    “This initiative will ultimately facilitate the realisation of ‘Leave No One Behind’ agenda, that is the central principle of the Sustainable Development Goals 2030 framework.”

  • Standard Chartered Bank declares Rs13.72 bn as annual profit

    Standard Chartered Bank declares Rs13.72 bn as annual profit

    KARACHI: Standard Chartered Bank (Pakistan) Limited on Friday announced Rs13.72 billion as net profit for the year ended December 31, 2021.

    The net profit of the bank slightly up when compared with Rs13.13 billion in the preceding year ended December 31, 2020, according to the financial results submitted to the Pakistan Stock Exchange (PSX).

    READ MORE: Allied Bank’s annual profit declines to Rs17.50 billion

    Standard Chartered Bank (Pakistan) Limited announced earnings per share at Rs3.55 for the year under review up from last year’s Rs3.39.

    The board of directors of the bank in their meetings held on February 17, 2022, recommended a final cash dividend at 17.5 per cent i.e. Rs1.75 per share of Rs10 each for the year ended December 31, 2021. This in an addition to the 12.5 per cent interim dividend already paid in 2021.

    READ MORE: Engro Corp declares over 19% growth in annual profit

    The Net Mark-up Income / interest income of the bank fell to Rs26.26 billion for the year ended December 31, 2021 as compared with Rs28.14 billion in the preceding year.

    Total non mark-up / interest income also eased to Rs11.12 billion from Rs12.8 billion.

    READ MORE: HUBCO declares 25% decline in half-year profit

    The total income of the bank came down to Rs37.39 billion for the year ended December 31, 2021 as compared with Rs40.94 billion in the preceding year.

    The operating expenses of the banks were flat at Rs11.54 billion as compared with Rs11.87 billion. The bank has shown provisioning of Rs494 million for the year under review as against provisioning and write offs to the tune of Rs4.94 billion in the preceding year.

  • Bank Alfalah tops in house financing under MPMG

    Bank Alfalah tops in house financing under MPMG

    KARACHI: Bank Alfalah has secured the top position in house financing under the government’s flagship Mera Pakistan Mera Ghar (MPMG).

    According to a statement issued by the State Bank of Pakistan (SBP), Bank Alfalah secured the top position followed by Meezan Bank Limited and Standard Chartered Bank Limited.

    A ceremony was held on Friday at Prime Minister House, Islamabad to mark Rs 100 billion in home finance approvals of the Governments flagship Mera Pakistan Mera Ghar (MPMG) program under the theme “ Khawab ke tabeer ab tez ter”.

    READ MORE: Financing for Mera Pakistan Mera Ghar gains momentum

    The Prime Minister lauded the leading role of the State Bank of Pakistan and the efforts of the banking industry in the implementation of MPMG. He also witnessed ceremonial keys being handed over to six beneficiaries of MPMG who were from different regions and represented a variety of segments of Pakistan.

    Over 20 other beneficiaries of MPMG also participated in the ceremony. The Prime Minister expressed his pleasure to see that low and middle-income citizens who were completely ignored earlier are now being served by the banks in obtaining home finance. While distributing awards among top-performing banks with respect to approvals and disbursements, he urged banks to accelerate their efforts to help realize the dream of every Pakistani to own their own homes.

    The ceremony was attended by Ali Amin Gandhapur-Federal Minister for Kashmir Affairs & Gilgit Baltistan, Dr. Shahbaz Gill-Special Assistant to Prime Minister on Political Communication, Senator Shaukuat Tareen-Adviser to Prime Minister on Finance & Revenue, Governor State Bank of Pakistan, Chairman NAPHDA, Dr. Amjad Ali-Minister for Housing Khyber Pakhtunkhwa and Presidents/CEOs of banks.

    READ MORE: SBP launches webpage for promoting house financing

    Dr. Reza Baqir, Governor State Bank of Pakistan, shared the progress of MPMG since inception, highlighting that all stakeholders are taking steps in the right direction to translate the Prime Minister’s vision of increasing homeownership into reality. Till December 20, 2021, banks have received applications of Rs. 263 billion while approvals of Rs. 109 billion have already been made. Over the last nine months, the approved amount increased by Rs. 98 billion. Disbursement has also increased from almost zero in March 2021 to Rs. 32 billion by December 20, 2021. While shedding light on the theme of the event, he mentioned that during the last month, banks on average approved Rs. 4 billion and disbursed Rs. 1.6 billion on weekly basis. He underscored the need to maintain and accelerate this momentum. There are six banks that disbursed over Rs. 2 billion each and seven banks have disbursed over Rs. 1 billion each in the span of 9 months under MPMG.

    The Governor said that growth in MPMG is attributed to various measures taken by the Government, SBP, and NAPHDA to provide a conducive environment for the banking industry to enter the untapped market of housing and construction finance. He mentioned the simplification of complex procedures, a significant reduction in documentation requirement, development of a model to assess informal income, effective redressal mechanism as examples of this support. Communication initiatives like Mera Pakistan Mera Ghar Meri Kahani –a series of testimonials of MPMG beneficiaries have also been instrumental in encouraging others to apply.

    READ MORE: PM launches house financing scheme for NRPs

    Earlier, in a meeting of the National Coordination Committee on Housing, Construction, and Development (NCCHCD), Governor SBP apprised the Prime Minister on developments in housing and construction finance. He recalled that in July 2020, in line with the Government’s vision of boosting economic activity, SBP mandated banks to increase their housing and construction finance to at least 5 percent of their domestic private sector advances by December 31, 2021. Five banks have already achieved their December 2021 targets. The best performing banks in this regard were Albaraka Bank followed by Meezan Bank and Dubai Islamic Bank. He highlighted that as of December 17, 2021, banks have lent Rs. 321 billion which is Rs. 173 billion more than their financing as of June 30, 2020, reflecting a growth of 117 percent since June 2020. He praised Bank Al Habib, National Bank, and Bank Alfalah for a significant increase in their housing and construction finance portfolio since June 2020 till date.

    In conclusion, Governor Baqir expressed SBPs confidence that the banking industry will continue to pace up its performance rapidly to meet the objectives of Mera Pakistan Mera Ghar and to reach targets mandated for Housing and Construction Finance.

    READ MORE: Meezan Bank becomes pioneer in Sharia financing for low cost housing

    The MPMG event also witnessed speeches from Senator Shaukat Tareen, Adviser to Prime Minister on Finance & Revenue, and Lt Gen Anwar Ali Hyder, Chairman NAPHDA. The Finance Adviser reiterated the Government commitment to MPMG and assured banks to provide all needed support. Chairman NAPHA requested banks to demonstrate commitment in providing housing finance to individuals in NAPHDAs LDA City and Peri Urban projects.

  • SCBL posts 17% decline in net profit during nine months

    SCBL posts 17% decline in net profit during nine months

    KARACHI: Standard Chartered Bank (Pakistan) Limited (SCBL) on Thursday announced a 17 per cent decline in profit after tax for the nine months period ended September 30, 2021.

    The bank declared Rs9.91 billion as profit after tax during January – September 2021 as compared with Rs11.91 billion in the corresponding period of the last year.

    The earnings per share of the bank also declined to Rs2.56 for the period under review as compared with Rs3.08 in the same period of the last year.

    SCBL in its financial statement said that despite uncertainties surrounding COVID-19, the bank delivered a resilient financial performance with a profit before tax of Rs18.4 billion compared to Rs19.9 billion in the corresponding period last year.

    The revenue of the bank fell to Rs26.56 billion during first nine months of the calendar year as compared with Rs32.07 billion in the corresponding months of the last year. The bank said that the revenue was lower by Rs5.5billion primarily due to sharp reduction in interest rates in second quarter of 2020, subdued economic activity and market volatility which impacted foreign exchange income, revaluation income on derivatives and gain on sale of securities.

    Administrative costs continue to be well managed through operational efficiencies and disciplined spending with an increase of one per cent compared to same period last year.

    Moreover, strong recoveries of bad debts, coupled with lower impairments as a result o a prudent risk approach led to a net release of Rs0.8 billion in year to date September 2021 compared to charge of Rs3.2 billion in the comparative period.

    The bank said that all businesses have positive momentum with strong growth in underlying drivers. “This is evident from pickup in net advances, which have grown by 26 per cent since the start of this year. This was a result of targeted strategy to build profitable, high quality and sustainable portfolios,” it added.

    On the liabilities side, the bank’s total deposits grew by Rs40 billion, whereas current and saving accounts grew by Rs41 billion since the start of this year and comprise 93 per cent of deposit base.

    Standard Chartered Bank declares 18pc fall in annual profit
  • Standard Chartered Bank declares 18pc fall in annual profit

    Standard Chartered Bank declares 18pc fall in annual profit

    KARACHI: Standard Chartered Bank (Pakistan) has declared annual profit of Rs13.13 billion for the year ended December 31, 2020, which was reduced by 18 percent when compared with Rs16 billion in the preceding year.

    According to financial results shared with the Pakistan Stock Exchange (PSX) on Friday, the fall in annual profit may be attributed to significant increase in provisioning and write offs during the year.

    The provisioning and write offs of the banks increased to Rs4.9 billion for the year ended December 31, 2020 when compared with Rs16.81 million in the preceding year.

    According to the financial results of the bank, an amount of Rs4.77 billion was cost under the head of provision against loans and advances for the year ended December 31, 2020.

    Net Interest Income of the bank slightly increased to Rs28.14 billion for the year under review as compared with Rs27.78 billion in the preceding fiscal year.

    Total income of the bank during the year also posted nominal growth to Rs40.93 billion when compared with Rs39 billion in the preceding year.

    Total expenses of the bank also increased slightly to Rs12.38 billion for the year ended December 31, 2020 when compared with Rs27.18 billion in the preceding year.

    The bank paid Rs10.48 billion as tax for the year ended December 31, 2020 as compared with Rs11.18 billion in the preceding year.

    Earnings per share of the bank fell to Rs3.39 as compared with EPS of Rs4.14 in the last year.

  • Standard Chartered Pakistan announces 42.5% growth in after tax profit

    Standard Chartered Pakistan announces 42.5% growth in after tax profit

    KARACHI: Standard Chartered Bank Pakistan has declared massive growth of 42.5 percent in after tax profit for the year ended December 31, 2019.

    The bank declared Rs16.017 billion profit after tax for the year 2019 as compared with Rs11.239 billion in the last year.

    The bank also declared earnings per share at Rs4.14 as compared with Rs2.9 billion in the last year.

    The profit before tax was recorded at Rs27.199 billion for the year 2019.

    The bank in its annual report said that a record performance in 2019 by the bank enabled it to deliver a profit before tax of Rs27.2 billion. “This is 47 percent higher than the corresponding period last year and the highest profit since incorporation.”

    Overall revenue growth was 37 percent, whereas client revenue increased by 31 percent year on year with positive contributions from transaction banking, financial markets and retail products.

    Operating expenses increased by only 2 percent year on year on account of spending mainly on the bank’s products, services and people to grow the franchise.

    All businesses have positive momentum in client income with strong growth in underlying drivers.

    Momentum in advances (net) continues with 29 percent growth since the start of the year. This was the result of a targeted strategy to build profitable, high quality and sustainable portfolios.

    With 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 10 percent, whereas current and saving accounts grew by 8 percent since the start of this year and are now 93 percent of the deposits base.

    The optimal funding structure of the balance sheet continues to support the Bank’s performance. During 2019, the bank contributed around Rs18.6 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 bank continues to invest in its digital capabilities and infrastructure to enhance our clients’ banking experience through the introduction of innovative solutions.

    “We have made steady progress in further strengthening our control and compliance environment by focusing on our people, culture and systems. We are fully committed to sustained growth by consistently focusing on our clients and product suite along with a prudent approach to building the balance sheet while bringing the best in class services to our customers.”

  • SCB Pakistan allowed Chinese Yuan clearing, settlement

    SCB Pakistan allowed Chinese Yuan clearing, settlement

    KARACHI: State Bank of Pakistan (SBP) has allowed Standard Chartered Bank, Pakistan to establish local Chinese Yuan Renminbi (CNY) clearing and settlement setup in the country.

    In a statement on Tuesday, the central banks said that Standard Chartered Bank (SCB) Pakistan can now open CNY accounts of the banks operating in Pakistan to facilitate settlement of CNY based transactions such as remittance to/from China.

    SCB can also provide CNY liquidity to the interbank market for the settlement of CNY based transactions.

    It may be mentioned here that over the years, the SBP has been at the forefront in providing a conducive policy and regulatory environment to encourage the use of local currencies in trade and financing transactions between China and Pakistan.

    Earlier, SBP had also permitted Industrial and Commercial Bank of China Limited (ICBC) Pakistan in 2015 and Bank of China Limited (BOC) Pakistan in 2018 to establish similar local CNY clearing and settlement mechanism in Pakistan.

    The expansion of local CNY clearing and settlement setup in Pakistan is expected to further improve efficiency of the local banking system in transacting in CNY, enhance market liquidity and facilitate rising trade and investment with China through fostering competition and increasing CNY resource avenues.


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