Standard Chartered Bank (Pakistan) Limited (SCBPL) reported a 20.7% year-on-year decline in profit after taxation to Rs17.87 billion for the nine months ended September 30, 2026, compared with Rs22.55 billion in the corresponding period last year. The decline was accompanied by a reduction in earnings per share, which fell to Rs4.62 from Rs5.82. The bank’s financial results reflected lower net interest income, a contraction in non-mark-up income and a decline in total revenue, despite efforts to keep operating expenses under control. However, the quarterly figures showed a slightly different trend, with profit for the third quarter of calendar year 2026 increasing by around 2% to Rs6.09 billion from Rs5.99 billion in the same quarter of 2025. Quarterly earnings per share also edged up to Rs1.57 from Rs1.55, indicating that the year-to-date decline was not repeated in the latest three-month comparison.
Net mark-up and interest income remained the principal pressure point in the nine-month results. The bank recorded mark-up, return and interest earned of Rs56.78 billion, down 18.2% from Rs69.39 billion in the corresponding period of 2025. Interest expenses also declined, falling 25.9% to Rs16.17 billion from Rs21.84 billion. However, the reduction in interest expenses was not enough to offset the fall in interest earned. Consequently, net mark-up and interest income dropped 14.6% to Rs40.61 billion from Rs47.55 billion. This decline reduced the income generated from the bank’s core interest-based activities and contributed significantly to the lower overall profitability. The results demonstrate how changes in interest earnings and funding costs can influence bank performance, particularly when income declines faster than the associated expenses.
Non-mark-up income also weakened during the period, decreasing 17.9% to Rs12.95 billion from Rs15.77 billion a year earlier. Fee and commission income fell 29.1% to Rs4.31 billion compared with Rs6.08 billion in the same period of 2025. Income from derivatives declined 62.4% to Rs261.46 million from Rs695.34 million. Gains on securities also turned into a loss, with the bank reporting a net loss of Rs207.74 million against a gain of Rs2.25 billion in the previous year. These reductions outweighed growth in several other income categories. Foreign exchange income increased 24.8% to Rs8.13 billion from Rs6.51 billion, while dividend income rose 12.7% to Rs158.80 million. Other income increased to Rs304.20 million from Rs104.02 million. Despite these gains, the overall decline in non-mark-up income, combined with lower net interest income, pushed total income down 15.4% to Rs53.56 billion from Rs63.32 billion.
The bank maintained relatively tight control over operating costs, limiting the decline in profitability from the expense side. Total non-mark-up expenses fell 1.2% to Rs17.61 billion from Rs17.83 billion in the corresponding nine-month period last year. Operating expenses remained almost unchanged at Rs16.82 billion compared with Rs16.89 billion. Workers’ Welfare Fund charges decreased 16.1% to Rs789.42 million from Rs940.76 million, while other charges declined to Rs1.23 million from Rs2.29 million. Nevertheless, the reduction in expenses was insufficient to compensate for the weaker revenue performance. Profit before credit loss allowances fell 21% to Rs35.95 billion from Rs45.49 billion. The figures indicate that the bank’s main earnings challenge during the period was associated with lower income rather than a significant increase in its reported operating cost base.
Credit-related adjustments provided some support to the pre-tax result compared with the previous year. Standard Chartered Bank Pakistan recorded a net reversal of credit loss allowances and write-offs of Rs1.17 billion, an increase of approximately 92.9% from the reversal of Rs608.87 million recorded in the same period of 2025. The reversal helped lift profit before taxation above the level recorded before credit loss allowances, but it did not prevent a year-on-year decline. Profit before taxation fell 19.5% to Rs37.12 billion from Rs46.10 billion. The bank’s taxation charge also decreased, dropping 18.2% to Rs19.25 billion from Rs23.55 billion. The lower tax expense partly cushioned the impact of weaker pre-tax earnings, leaving profit after taxation at Rs17.87 billion. Basic and diluted earnings per share declined by approximately 20.6% to Rs4.62 from Rs5.82.
The nine-month results present a mixed picture for Standard Chartered Bank Pakistan as it navigates changing market conditions. The bank’s ability to contain non-mark-up expenses and increase foreign exchange income provided some support, while the third-quarter improvement in net profit offered a more positive short-term comparison. However, the decline in interest earnings, lower fee and commission income and the reversal of securities gains into a loss weighed heavily on cumulative performance. Total income contracted faster than operating expenses could be reduced, contributing to the decline in profit before taxation and final earnings. The coming quarters will show whether the bank can strengthen its core income streams and sustain expense discipline amid changes in Pakistan’s interest rate environment and broader financial market conditions.
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