Standard Chartered Bank Pakistan Limited has released its financial results for the first quarter ended March 31 2026, documenting a profit after taxation of 5.60 billion rupees. This represents a 30 percent decline from the 7.99 billion rupees reported during the same quarter in the previous year. In line with this contraction, the bank’s basic and diluted earnings per share fell to 1.45 rupees, down from 2.06 rupees in the first quarter of 2025. The decline was largely driven by significant pressure on both funded and non-funded income categories, reflecting a challenging operational environment for the multinational lender.
On the funded side, the bank’s mark-up and interest earned saw a steep 33 percent year on year drop, falling to 17.93 billion rupees. While the institution successfully reduced its cost of funds by 50 percent to 4.92 billion rupees, the decrease in interest earned was more substantial in absolute terms. As a result, the net mark-up income contracted by 23 percent to settle at 13.02 billion rupees. This tightening of core margins indicates a shift in asset pricing and liquidity management strategies as the bank navigates the evolving domestic interest rate landscape.
The bank’s non-funded operations added further downward pressure, with total non-mark-up income plunging by 41 percent to 3.59 billion rupees. This sharp decline was triggered by multiple factors, including a 32 percent drop in fee and commission income and a massive 93 percent collapse in income from derivatives. Furthermore, the bank’s performance was impacted by a net loss on securities amounting to 750.87 million rupees, a stark reversal from the gain of 672.42 million rupees recorded last year. These losses overwhelmed a modest 3 percent increase in foreign exchange income, which reached 2.47 billion rupees for the quarter.
Despite the top-line challenges, Standard Chartered exhibited strong fiscal discipline on the operational front. Total non-mark-up expenses decreased by 2 percent to 5.62 billion rupees, supported by lower operating expenses and reduced contributions to the Workers’ Welfare Fund. However, the significant drop in total income still pushed the profit before credit loss allowance down by 37 percent. A notable positive for the bank was a substantial improvement in asset quality, evidenced by a net reversal of credit loss allowances totaling 732.10 million rupees, compared to a provision charge in the previous year.
This healthy provision reversal and tight cost control helped mitigate some of the revenue loss, limiting the pre-tax profit decline to 31 percent, which settled at 11.73 billion rupees. After accounting for a taxation expense of 6.13 billion rupees, which was 32 percent lower than the previous year, the bank finalized its first-quarter net profit at 5.60 billion rupees. While the overall results show a year on year decline, the bank’s ability to manage its cost base and improve its credit risk profile remains a key focus for its management as they look toward the remainder of the 2026 fiscal year.
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