SCB’s Profit Before Tax up 26% to Rs 16.2bn during H1 2020

Overall revenue increased by 26%, deposit crossed Rs 500bn

KARACHI: Standard Chartered Bank (SCB-Pakistan) Limited posted its Profit Before Tax of Rs 16.2 billion in First Half 2020, which is 26 per cent higher than corresponding period last year.

With Revenue of Rs 23.5 billion, the overall revenue growth was 26 per cent, whereas client revenue increased by 27 per cent year on year with positive contribution from Financial Markets, Retail Products and Transaction banking. Cost discipline continues with only 4per cent year on year increase in operating expenses.

The current slowdown in the economic activity due to COVID-19 impacted the advances momentum. The Bank is closely monitoring the portfolio in the backdrop of the changing economic environment and is maintaining adequate provisions, where required.

The Bank achieved another milestone as total deposits crossed Rs 500 billion. With a growth of 17 per cent in H1, total deposits closed at Rs 547 billion, with current and saving accounts constituting 93 per cent of the deposits base. The robust performance resulted in an increase of 14% in total assets to achieve the Rs 700 billion milestone. The optimal funding structure of the balance sheet continues to support the Bank’s performance.

Commenting on the results, Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said, “I am delighted to announce our First Half 2020 results. The Bank has performed exceptionally well and has continued to deliver on all key metrics on the back of a strong balance sheet.”

He further said, “while the external environment remains challenging, our results demonstrate our strong business fundamentals. We continue to invest in digital capabilities to enhance our clients’ banking experiences whilst continuing to focus on strengthened foundations of controls and conduct, equipping us to effectively manage our risks, capital and liquidity. The prudent and proactive measures that we are taking now will make us leaner and fitter to take advantage of the opportunities that will help the franchise grow in the future.”