Standard Chartered Bank Pakistan Limited Reports Impressive Q1 2024 Performance
In a notable display of financial prowess, Standard Chartered Bank Pakistan Limited (SCBPL) has announced a substantial surge in its first-quarter profits for 2024. The bank reported a staggering 53 percent growth in profit before tax, reaching Rs. 24.7 billion. After-tax profits also experienced a commendable uptick of 22.2 percent, totaling Rs. 11.23 billion compared to Rs. 9.19 billion in the corresponding period last year.
Revenue figures also paint a picture of robust growth, with an overall revenue increase of 44 percent, and a particularly impressive 36 percent rise in client revenue year-on-year, reflecting positive contributions across all segments. Despite a 22 percent increase in operating expenses, aligning with inflationary trends, SCBPL maintains its industry-leading position with a commendably low cost-to-income ratio of 17 percent.
Furthermore, prudent risk management strategies resulted in lower impairments and net recoveries of bad debts, amounting to a net release of Rs. 0.5 billion in Q1 2024, compared to a net charge of Rs. 0.2 billion in the same period last year.
On the liabilities front, the bank’s total deposits climbed to Rs. 765 billion, marking a notable increase of Rs. 45 billion. Current accounts, a significant indicator of stability and liquidity, exhibited a healthy growth of Rs. 33 billion since the beginning of the year, constituting 52 percent of the deposit base. Conversely, net advances experienced a slight decline of Rs. 11 billion or 5 percent since the start of the year.
Investing in digital innovation remains a strategic focus for SCBPL, aimed at enhancing the banking experience for its clientele. With a commitment to building a profitable, efficient, and sustainable portfolio, the bank is poised to cater to evolving client needs effectively.
Rehan Shaikh, Chief Executive Officer of Standard Chartered Bank (Pakistan) Limited, expressed pride in the team’s dedication and credited their efforts for the exceptional performance in Q1 2024. He extended gratitude to shareholders, clients, and partners for their continued trust and support.
With a robust Return on Equity (ROE) of 47 percent and a healthy Capital Adequacy Ratio (CAR) of 18.31 percent, SCBPL is well-positioned for future growth initiatives. The Board of Directors has consequently announced an interim cash dividend of 15.0 percent (Rs. 1.50/- per share) in respect of the three-month period ended March 31, 2024.
As economic conditions improve and business prospects brighten, SCBPL remains optimistic about the opportunities that lie ahead in 2024.
