Standard Chartered Bank Pakistan Limited (SCBPL) has reported a landmark achievement in its financial performance for 2024, with a record profit before tax (PBT) of PKR 100.6 billion, reflecting a 13% year-on-year (YoY) growth. This remarkable performance highlights the bank’s continued growth trajectory despite the challenging economic environment.
The bank’s performance was bolstered by a robust 9% growth in income, driven by positive contributions across all business segments. Despite facing a high inflationary environment and making significant investments in infrastructure, SCBPL effectively managed its operating expenses, resulting in the lowest cost-to-income ratio in the industry at just 19%. This efficient management contributed significantly to the overall growth in profits.
A prudent approach to risk management and strategic recoveries from bad debts led to a net reversal in impairment of PKR 4.9 billion during the year. The bank’s commitment to effective risk management and capital conservation has been a key factor in ensuring sustainable growth and profitability.
On the liabilities side, Standard Chartered Pakistan saw its total deposits increase to PKR 836 billion, up by PKR 116 billion from the previous year. The bank also saw a significant growth of PKR 37 billion (10% YoY) in current accounts, which now account for 48% of the total deposit base. However, net advances, or the loans issued by the bank, were lower by PKR 49 billion (22% YoY), reflecting a more conservative lending approach in the face of external uncertainties.
One of the highlights of SCBPL’s year was its substantial contribution to Pakistan’s national exchequer, where the bank paid PKR 78.9 billion in direct income taxes and other federal and provincial taxes. This contribution underscores the role of Standard Chartered in supporting the national economy and promoting fiscal responsibility.
Despite the ongoing challenges in the external environment, SCBPL remains fully committed to driving sustainable growth for its shareholders. The bank’s strategy continues to focus on delivering world-class services and solutions to clients while contributing to the broader economic growth of Pakistan. By leveraging its cross-border capabilities and wealth management expertise, SCBPL aims to further strengthen its market position.
Rehan Shaikh, CEO & Head of Coverage at Standard Chartered Bank Pakistan, expressed his pride in the bank’s historic performance, attributing the success to the dedication and hard work of the entire SCBPL team. “These results reflect our unwavering commitment to our clients and the effectiveness of our strategic priorities,” Shaikh said. “We have taken proactive measures to position ourselves for future opportunities, and our 160-year legacy in the region has always been centered on playing a key role in Pakistan’s economic development.”
Looking ahead, SCBPL plans to further invest in its digital capabilities and infrastructure, enhancing its customers’ banking experience through innovative solutions. This focus on digitalization is part of the bank’s broader strategy to modernize its services and cater to the evolving needs of its clients in an increasingly tech-driven financial landscape.
The bank’s strong performance is also reflected in its Return on Equity (ROE), which stood at an impressive 43% for the year, and its Capital Adequacy Ratio (CAR) of 23.5%. These key metrics underscore SCBPL’s solid financial foundation and its readiness to continue expanding in the future.
In recognition of its strong financial performance, the bank’s Board of Directors announced a final cash dividend of 55.0% (PKR 5.50 per share), in addition to the interim cash dividend of 35.0% (PKR 3.50 per share) previously announced. This brings the total dividend payout for the year to 90.0% (PKR 9.0 per share), further reinforcing SCBPL’s commitment to delivering value to its shareholders.
As Standard Chartered Pakistan continues to lead the charge in delivering superior banking services, it remains well-positioned for future growth, driven by its strong performance, prudent risk management, and ongoing investments in digital transformation.