Highlights:
• Record profit before tax of PKR 100.6 billion, a growth of 13 per cent YoY
• Strong revenue of PKR 118.2 billion, up 9 per cent YoY
• Focus on productivity and efficiency, with industry leading cost to income ratio of 19%
• Risk discipline continues with net reversal in impairment of PKR 4.9 billion
• Robust growth in deposits of PKR 116 billion, up 16 per cent from last year
• Current accounts grew by PKR 37 billion, up 10 per cent YoY
• Healthy increase in total assets, growth of 6 per cent compared to last year
Karachi: Standard Chartered Bank Pakistan Limited (SCBPL) delivered a record performance with profit before tax of PKR 100.6 billion reflecting a growth of 13% YoY.
Performance was driven by strong income growth of 9% YoY, with positive contributions from all segments. Despite a high inflationary environment and investments in infrastructure, operating expenses were well managed, delivering lowest cost to income ratio in the industry of 19%. Prudent risk approach and recoveries of bad debts led to a net reversal in impairment of PKR 4.9 billion during the year.
On the liabilities side, Bank’s total deposits stand at PKR 836 billion; up by PKR 116 billion from last year, whereas current accounts registered a healthy growth of PKR 37 billion up 10% YoY and comprise 48% of the deposit base. On the asset side, net advances were lower by PKR 49 billion or 22% compared to last year.
During 2024, the Bank contributed PKR 78.9 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.
Whilst the external environment remains challenging, the Bank remains fully committed to delivering sustainable growth for our shareholders, bringing best-in-class services and solutions for our clients and playing our part in the growth story of Pakistan. The Bank will continue executing on its strategy of combining differentiated cross-border capabilities with leading wealth management expertise. Having strengthened our foundations on controls and conduct, we are well equipped to manage our risks, capital and liquidity effectively.
The Bank is investing in its digital capabilities and infrastructure to enhance its clients’ banking experience through the introduction of innovative solutions.
Commenting on the results, Rehan Shaikh, Chief Executive Officer & Head of Coverage, Standard Chartered Bank Pakistan said, “I am incredibly proud of the entire Standard Chartered Pakistan team for delivering a historic performance in 2024. It is their dedication and relentless pursuit of excellence which have enabled us to achieve these outstanding results and cross the PKR 100 billion mark in 2024. These results reflect our unwavering commitment to our clients and the effectiveness of our strategic priorities. At the same time, we have taken prudent and proactive measures to make us leaner and fitter to take advantage of the opportunities that lie ahead. As a Bank with a 160-year legacy in the region, we have always played a partnering role in Pakistan’s economic growth. I am thankful to our shareholders, clients, and business partners for their continued trust in our capabilities. Together, we are setting new benchmarks for success.”
With a strong Return on Equity (ROE) of 43% for the year and a Capital Adequacy Ratio (CAR) of 23.5%, the Bank remains well positioned for future growth. On the back of a strong performance, the Board of Directors were pleased to announce a final cash dividend of 55.0% (PKR 5.50/- per share). This is in addition to 35.0% (PKR 3.50/- per share) interim cash dividend announced / paid during the year, thereby taking the total dividend pay-out to 90.0% (PKR 9.0/- per share).
Standard Chartered continues to be recognised for its financial performance and received “Best Bank in the Commercial Sector” at the 39th Corporate Excellence Awards by the Management Association of Pakistan (MAP) as well as two prestigious accolades from the CFA Society: Best Bank 2023 in the Mid-Sized Banks category and the Gender Diversity at Workplace Award. The Bank’s efforts on building a more diverse & inclusive workplace were also acknowledged by the GDEIB awards where Standard Chartered Pakistan won nine awards and was recognised as one of the top 20 inclusive organisations in the country.
Through our global Futuremakers initiative the Bank serves the communities it operates in by running programmes that directly work on addressing gender disparity, building economic inclusion and creating pathways to employability for disadvantaged groups. The SC Women in Tech Programme has been hugely successful in building economic inclusion and ensuring women entrepreneurs receive access to funding with over 145 women-led businesses supported since 2019. Through the Goal Programme the Bank works to create concrete pathways for underprivileged girls and young women to become economically resilient. Since its launch in 2016, the Bank has impacted more than 90,000 adolescent girls in Pakistan by providing financial literacy, life skills and employability training. The Bank also partners with Karachi United and launched the Seventh Youth League – Football Tournament to promote sports amongst children for the seventh year in a row.
