KARACHI: Standard Chartered Bank (Pakistan) Limited delivered a strong profit before tax of Rs 16.1 billion for Q1’23, registering an increase of 37 percent year on year. Performance was driven by strong income growth, as well as continued cost and risk discipline.
Overall revenue grew by 43 percent to deliver highest ever quarterly top-line of Rs 20.4 billion, with positive contributions from all segments. Operating expenses were well managed through efficiencies and disciplined spending with an increase of 25 percent from comparative period, in line with inflation. Moreover, prudent risk approach coupled with recoveries of bad debts led to a low net charge of Rs 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 Rs 729 billion, up by Rs 10.3 billion, whereas current and saving accounts grew by Rs 28 billion (up 4 percent) since the start of 2023 and comprise 98 percent of the deposit base.
On assets side, net advances increased by 6 percent and the Bank continues to follow a prudent lending approach. With a strong Return on Equity (ROE) of 42.3 percent for the period and a Capital Adequacy Ratio (CAR) of 16.8 percent, 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, 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.
Copyright Business Recorder, 2023