Standard Chartered Bank posts highest ever profit before tax of Rs 27.2bn

KARACHI: Standard Chartered Bank (Pakistan) Limited, the country’s largest and oldest International bank, Friday announced its Profit before tax of Rs 27.2 billion, which is 47 per cent higher than last year. Profit after tax registered a growth of 43 per cent to close at Rs 16 billion; highest ever since its incorporation.

In its annual results for 2019, the Bank had a record year of performance in 2019.

A strong and diversified business performance drove an all-time high income of Rs 39.1 billion, a growth of 37 per cent YoY. Operating expenses were well controlled with an increase of only 2 per cent YoY, well below the country inflation rate, resulting in all time low cost to income ratio of 30 per cent.

All businesses have a positive momentum in client income which grew 31 per cent year on year with strong growth in underlying drivers. Momentum in advances (net) continues with 29 per cent growth since the start of the year.

This was the result of a targeted strategy to leverage our brand, client relationships and strong global network in building profitable and high-quality portfolios.

The Bank continued to maintain its leadership in low cost deposits with CASA to Deposits ratio of 93 per cent despite strong competition. Total deposits recorded a growth of 10 per cent, with CASA growing by 8 per cent in 2019.

The bank won several awards and accolades in the year including “Best Commercial Bank” by Management Association of Pakistan, “Best Foreign Bank in Pakistan” by Finance Asia, “Best International Bank” by Asia Money and “Best Islamic Bank” by the Banker Magazine.

During 2019, the Bank contributed around PKR18.6 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 2019, the Board of Directors have recommended a final cash dividend of 17.5 per cent (Rs 1.75 per share). This is in addition to the 12.5 percent (Rs 1.25 per share) interim cash dividend announced during the year; thereby taking the total dividend pay-out to a record high of 30 per cent (Rs 3.00 per share).

Commenting on the results, Shazad Dada, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said, “the Bank has performed exceptionally well and has delivered its highest ever profit. 2019 has been a significant year, with developments that have contributed directly to the growth of the country franchise. These results are testament of our commitment to delivering a consistent and continued performance. Having strengthened our foundations on controls and conduct, we recognise the importance of sustained growth with a focus on income whilst strongly monitoring cost and prudent risk management.”

Our digital journey is well on-track having executed over 21 million electronic transactions for our clients while ensuring a seamless client experience throughout all our segments.

Although the external environment remains challenging, we are committed to raising the bar on our performance whilst ensuring that our clients’ needs are at the heart of everything we do, he added.

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