Standard Chartered Bank Pakistan Limited (SCBPL) Delivers Record Profit
Standard Chartered Bank Pakistan Limited (SCBPL) has announced a record profit before tax of PKR 50.1 billion, representing a 102% YoY increase. This growth was fueled by strong income growth, cost and risk discipline.
Revenue Growth and Cost Management
Overall revenue grew by 68% to deliver a highest ever top line of PKR 62.6 billion, with positive contributions from all segments. Despite a high inflationary environment and continuous investments in infrastructure, operating expenses were well managed through efficiencies and disciplined spending. Moreover, reversal of Covid-19 general provision, coupled with lower impairments and strong recoveries led to a net release of PKR 1.3 billion during the year against a net charge of PKR 0.5 billion in loan impairments in 2021.
Deposit and Advances Base
With a diversified product base, the Bank is well-positioned to cater to the needs of its clients. On the liabilities side, the Bank’s total deposits grew by PKR 91.7 billion (up 15%), whereas current and saving accounts increased by PKR 108.7 billion (up 19%) in 2022 and comprise 96% of the deposit base. The Bank continues to monitor the portfolio in the prevailing economic environment as part of its strategy to build a profitable, efficient, and sustainable business. As a result, advances declined by 8% during the year.
Contributions to National Exchequer and Strategic Priorities
During 2022, the Bank contributed around PKR 38 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. The Bank remains fully committed to delivering sustainable growth for shareholders, bringing the best-in-class services and solutions for clients and playing its part in the growth story of Pakistan.
The Bank’s transformation journey is well-curated, closely aligned with Pakistan’s landscape and helping lift participation through digitization. Sustainable finance along with digital solutions for clients and their ecosystem stays as areas of keen focus for the Bank. The Bank continues with its efforts under the ‘Futuremakers by Standard Chartered’ initiative to tackle inequality and promote greater economic inclusion for young people in the community, and has also contributed USD 249,000 for Flood Relief projects in Pakistan in 2022.
CEO Comments on Results
Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited, commented, “We are pleased to share our results for the year 2022 which clearly reflect strong foundations, enhanced productivity and good headway towards achieving our strategic priorities. The results give us the confidence that we have the right strategy to deliver real value to our clients, our investors, and the communities where we operate.”
Dividends, ROE, and CAR
With a strong Return on Equity (ROE) of 23.7% for the year and a Capital Adequacy Ratio (CAR) of 18.68%, the Bank remains well positioned for future growth. On the back of a strong performance, the Board of Directors announced a final cash dividend of 25% (PKR 2.50/- per share), resulting in the highest-ever full year dividend of 40% (PKR 4.00/- per share).
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