Standard Chartered Bank (Pakistan) Limited (SCBPL), a subsidiary of Standard Chartered Plc, has announced a notable financial performance for the year 2024, with a profit after tax of Rs46.06 billion. This marks an 8% year-on-year increase from the Rs42.62 billion reported for the same period in 2023. The strong financial results reflect SCBPL’s resilience in navigating Pakistan’s challenging economic landscape while maintaining steady growth.
The bank’s earnings per share (EPS) for 2024 stood at Rs11.90, up from Rs11.01 in the previous year. The rise in EPS highlights the bank’s ability to enhance its profitability on a per-share basis, despite the economic headwinds it faced throughout the year.
In line with these positive results, Standard Chartered Pakistan’s Board of Directors recommended a final cash dividend of 55%, equating to Rs5.5 per share of Rs10. This is in addition to the 35% interim dividend already paid out earlier in 2024, bringing the total dividend for the year to Rs9 per share.
A key contributor to the bank’s financial performance was its interest income, which amounted to Rs159.13 billion in 2024, a nearly 5% increase from Rs151.85 billion in 2023. This growth in interest income reflects the bank’s capacity to generate solid returns from its lending and investment activities, even in a challenging interest rate environment.
However, despite the rise in total interest income, SCBPL’s net markup declined slightly, reaching Rs93.51 billion in 2024, compared to Rs94.73 billion in 2023. This represents a decrease of over 1%. The drop was attributed to a 15% increase in interest expenses during the year, which eroded some of the gains made in interest income.
SCBPL’s non-interest income also played a significant role in driving its overall performance. The bank reported a 27% increase in fee and commission income, which reached Rs6.99 billion in 2024, compared to Rs5.52 billion in 2023. This growth reflects the bank’s strong performance in its non-lending businesses, including wealth management, investment banking, and transaction services.
The bank also posted impressive gains in foreign exchange income, which surged 74% to Rs9.92 billion in 2024 from Rs5.71 billion the previous year. This boost in foreign exchange income can be attributed to favorable market conditions, as the demand for foreign currency services grew.
In addition to its solid performance in fee and foreign exchange income, Standard Chartered Pakistan reported substantial gains on securities, registering a gain of Rs4.6 billion in 2024, compared to a loss of Rs996 million in 2023. This remarkable turnaround in the securities segment significantly contributed to the bank’s overall income growth.
As a result, SCBPL’s total income for the year rose by 9%, reaching Rs118.2 billion. Despite the challenges posed by higher operating costs, the bank maintained profitability, with non-interest expenses rising by 18% to Rs22.46 billion in 2024, up from Rs18.99 billion in the previous year.
The bank’s profit before tax (PBT) for 2024 increased by nearly 13%, amounting to Rs100.62 billion, further reflecting its ability to navigate a complex financial environment while maintaining strong operational efficiency.
In terms of tax liabilities, Standard Chartered Pakistan paid Rs54.55 billion in taxes during 2024, up 17% from the Rs46.59 billion paid in the previous year. This increase in taxes paid aligns with the bank’s overall growth in profitability and highlights its role as a major contributor to Pakistan’s fiscal revenue.
Overall, SCBPL’s 2024 performance underscores the bank’s strong market position and operational efficiency, even in the face of economic challenges. With robust income growth, strategic dividend payouts, and a diversified revenue stream, the bank remains well-positioned to continue its success in the coming years.