Standard Chartered Bank Pakistan Limited (SCBPL) has posted a strong and resilient financial performance for the first quarter of 2025, reporting a profit before tax of Rs. 17.0 billion. Although this reflects a decline from Rs. 24.7 billion in the same quarter of 2024, the bank’s financials remain solid amidst a challenging macroeconomic environment, demonstrating effective cost management and operational efficiency.
The bank generated revenue of Rs. 23.1 billion during the quarter, which was Rs. 6.4 billion lower year-on-year. This decline was largely driven by a sharp reduction in interest rates, impacting net interest income. However, the bank was able to partially offset this pressure through a boost in non-funded income and a lower cost of funds, showing the strength of its diversified income streams and balanced approach to risk management.
Despite an 11% year-on-year increase in operating expenses, attributed mainly to inflationary pressures and continued investment in infrastructure and human capital, Standard Chartered maintained the industry’s lowest cost-to-income ratio at an impressive 25%. This highlights the bank’s consistent focus on efficiency and cost control, even while investing in strategic growth areas.
A significant contributor to the positive earnings profile was the bank’s disciplined risk strategy. The period saw only a minor provisioning charge of Rs. 0.3 billion, supported by continued recoveries of previously written-off debts. This indicates prudent credit risk management and a strengthening of the bank’s asset quality.
On the liabilities front, total deposits declined by 13% from the beginning of the year, settling at Rs. 726 billion. While the reduction in overall deposits reflects broader market trends, the composition of the bank’s deposit book improved significantly. Current accounts now represent 54% of total deposits, up from 48% a year ago, enhancing the bank’s funding stability and cost efficiency.
On the asset side, Standard Chartered recorded a substantial increase in net advances, which grew by Rs. 54 billion or 31% during Q1 2025. This surge suggests growing demand for credit and increasing economic momentum, further underlining the bank’s ability to support its clients in a recovering market.
With a robust Return on Equity (ROE) of 28.9% and a strong Capital Adequacy Ratio (CAR) of 19.0%, Standard Chartered Pakistan remains well-capitalized and well-positioned to pursue future growth. These metrics reflect the bank’s long-term financial strength and resilience in adapting to changing economic conditions.
Looking ahead, the bank continues to closely monitor the evolving economic landscape and remains committed to building a profitable, sustainable, and digitally enabled portfolio. Standard Chartered’s strategic focus will remain on leveraging its global cross-border capabilities, deep wealth management expertise, and continued investments in digital transformation.
This Q1 2025 performance reinforces Standard Chartered’s position as a leading modern bank in Pakistan, blending international best practices with local expertise to deliver consistent value to its clients and stakeholders.