Standard Chartered Bank (Pakistan) Limited has announced an outstanding achievement in its financial performance for the first half of the year, recording an impressive 132% year-on-year growth in profits, amounting to Rs. 18.8 billion.
This remarkable performance can be attributed to robust income growth, as well as a steadfast commitment to managing costs and risks effectively. The bank’s Board of Directors has also declared an interim cash dividend of 40.0 percent (equivalent to Rs. 4.00 per share) for the first half of the year, ending on June 30, 2023.
Standard Chartered Bank Record-breaking Profits: 132% Growth in H1 2023
The bank’s overall revenue surged by an impressive 70%, resulting in a total top-line figure of Rs. 46.6 billion. This growth was observed across all segments of the bank’s operations. Notably, the Net Interest Income experienced a substantial increase of 150% year-on-year. This growth was driven by proactive management of the bank’s balance sheet, strategic pricing practices, and the benefit of higher interest rates.
Through efficient operational strategies and disciplined expenditure, the bank managed its operating expenses well. There was a 27% increase compared to the same period last year, in line with inflation rates. Furthermore, the bank’s prudent approach to risk management led to lower impairments and the recovery of bad debts, resulting in a net release of Rs. 12 million in the first half of 2023.
Driving Factors: Strong Income and Efficient Costs
Standard Chartered Bank (Pakistan) Limited maintains a diversified product portfolio, which positions it well to cater to its clients’ varying needs. On the liabilities side, the bank’s total deposits reached an impressive Rs. 726 billion. The current accounts segment notably experienced a robust growth of Rs. 83.7 billion, marking a 25% increase since the beginning of the year.
While the bank’s net advances on the assets side remained relatively stable, it reflects the bank’s cautious lending approach, which is aligned with the prevailing economic conditions.
In line with its strategic objectives, Standard Chartered Bank continues to make substantial progress. The bank’s global network sets it apart, enabling the delivery of innovative solutions, specialized products, and offshore offerings. The bank has also embraced digital transformation and enhanced its digital offerings, allowing it to reach a broader client base across Pakistan. Clients can now conveniently open accounts and access banking services online, contributing to financial inclusion efforts by the State Bank of Pakistan.
Digital Advancements: Enhanced Services and Reach
Standard Chartered Bank transformation journey is well-aligned with Pakistan’s evolving landscape, and it actively contributes to digitization efforts that promote wider participation in the financial sector. The bank remains steadfast in its focus on sustainable finance and the development of digital solutions for clients and their broader ecosystems.
Rehan Shaikh, the Chief Executive Officer of Standard Chartered Bank (Pakistan) Limited, expressed his thoughts on the impressive results. He highlighted that the bank’s exceptional performance underscores its resilience, strong foundation, and progress toward strategic goals. He also emphasized the bank’s commitment to providing top-tier banking services to clients while continuously investing in technological advancements and capabilities for the future. The bank’s digital transformation journey is ongoing, marked by the introduction of leading platforms and partnerships that leverage the expertise of the Standard Chartered Group.
The CEO extended gratitude to the Standard Chartered Bank clients, business partners, associates, and colleagues for their trust, commitment, and contributions that have supported the bank’s journey of growth and innovation.
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