Karachi, 27 April 2023 – Standard Chartered Bank (Pakistan) Limited delivered a strong profit before tax of PKR 16.1 billion for Q1’23, registering an increase of 37 per cent year on year.Performance was driven by strong income growth, as well as continued cost and risk discipline.
Overall revenue grew by 43 per cent to deliver highest ever quarterly top-line of PKR 20.4 billion, with positive contributions from all segments. Operating expenses were well managed through efficiencies and disciplined spending with an increase of 25 per cent from comparative period, in line with inflation. Moreover, prudent risk approach coupled with recoveries of bad debts led to a low net charge of PKR 0.2 billion in Q1’23.
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 stand at PKR 729 billion, up by PKR 10.3 billion, whereas current and saving accounts grew by PKR 28 billion (up 4 per cent) since the start of 2023 and comprise 98 per cent of the deposit base. On assets side, net advances increased by 6% and the Bank continues to follow a prudent lending approach. With a strong Return on Equity (ROE) of 42.3% for the period and a Capital Adequacy Ratio (CAR) of 16.8%, the Bank remains well positioned for future growth.
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. The Bank continues with its efforts under the initiative ‘Futuremakers by Standard Chartered’ to tackle inequality and promote greater economic inclusion for young people in the community.
Commenting on the results, Mr. Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said, “Our results for the first quarter of 2023 amid a tough external environment have set a strong and optimistic tone for the year and we plan to build on this momentum going forward. The results demonstrate solid 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 services 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 network’s expertise and incorporating feedback of our clients in our offerings.
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.”
