KARACHI: Standard Chartered Bank (Pakistan) Limited, the country's largest and oldest international bank, announced its annual results for 2020, declaring a profit before tax of Rs 23.6 billion.
Overall revenue grew 5 percent and client revenue increased by 15 percent year on year despite significant reduction in interest rates and economic uncertainty due to the pandemic. Costs remained well managed and increased by only 4 percent year on year.
The Bank continued to follow a prudent risk approach and booked loan impairment charge of Rs 4.9 billion.
"The risk environment remains heightened and we continue to monitor the portfolio given uncertainties surrounding Covid-19", a press release issued by SCBP on Friday said.
On advances side, portfolio declined 15 percent year on year, due to the slowdown in economic activity which impacted credit demand. Bank's balance sheet is well capitalised and liquid and is positioned to leverage the opportunity from resumption in economic activity. With a diversified product and client base, the Bank will continue its strategy to build a profitable, efficient and sustainable portfolio.
On the deposits side, the Bank achieved another milestone, with highest ever growth of Rs 91 billion, as total deposits crossed Rs 550 billion. At year end, total deposits closed at Rs 557 billion with a growth of 20 percent, whereas current and saving accounts also grew by 19 percent from the start of the year and are now 93 percent of the deposit base. The optimal funding structure of the balance sheet continues to support the Bank's performance.
During 2020, the Bank contributed around Rs 12.9 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.
For the year 2020, the Board of Directors have recommended a cash dividend of 27.5 percent (Rs 2.75 per share).
Commenting on the results, Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said, "I am delighted to announce that the Bank has performed well in 2020, delivering a profit before tax of Rs 23.6 billion. Our results demonstrate our strong business fundamentals. Having strengthened our foundations on controls and conduct we are well equipped to manage our risks, capital and liquidity effectively. The prudent and proactive measures that we are taking now will make us leaner and fitter to take advantage of the opportunities that lie ahead."
"As we move forward, we will increase our investments in further strengthening our digital infrastructure. These investments will be the fuel for our engine of growth in the future and will drive transformative change in the way we acquire, service and deliver products to our clients."-PR
Copyright Business Recorder, 2021