SCB Pakistan declares profit before tax of Rs 18.5bn, up 37%

Highest ever profit before tax of Rs 18.5billion — Client revenue increased by 13 per cent — The Bank’s total deposits crossed Rs 400 billion — Advances (net) grew by 23 per cent

KARACHI: Standard Chartered Bank (SCB) Pakistan Limited Wednesday declared Profit Before Tax of Rs 18.5 billion. This is 37 per cent higher than corresponding period last year and the highest ever profit.

Announced the annual results for 2018, the Bank posted overall revenue growth was 12 per cent, whereas client revenue increased by 13 per cent year on year with strong contribution from transaction banking, financial markets and retail deposits. In-country operating expenses increased by only 5 per cent year on year on account of spending, mainly in 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. This is evident from pickup in net advances, which grew by 23 per cent during the year. This was a result of targeted strategy to build profitable, high quality and sustainable portfolios. With a diversified product base, the Bank is well positioned to cater for the needs of its clients.

On the liabilities side, another milestone was achieved whereby the Bank’s total deposits crossed Rs 400 billion. Total deposits grew by 13 per cent, whereas current and saving accounts registered a growth of 15 per cent during the year and are now 94 per cent of the deposits base.

The optimal funding structure of the balance sheet continues to support the Bank’s performance.

Final cash dividend of 15 per cent (Rs 1.50 /- per share) has been recommended by the Board of Directors for approval at the 13th Annual General Meeting of the Bank’s shareholders. This is in addition to 7.5 per cent (Rs 0.75/- per share) interim cash dividend announced / paid during the year.

Commenting on the results, Shazad Dada, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said, “the Bank has performed exceptionally well and has delivered the highest ever profit. These results further demonstrate our commitment to delivering a consistent and sustained performance while leveraging our unique capabilities, digital strength and network presence. This year another historic milestone has been achieved whereby the Bank’s total deposits crossed 400 billion.

While challenges in the external environment persist, there is an optimistic enthusiasm for the coming year. We are fully committed to sustained growth by consistently focusing on our clients and bringing to them a best in class product suite and services.”