Standard Chartered Bank (Pakistan) Limited (PSX: SCBPL), one of the country’s leading foreign financial institutions, has reported a 30.74% year-on-year decline in profit after tax to Rs22.5 billion for the nine months ended September 30, 2025, compared to Rs32.6 billion during the same period last year. The bank’s earnings per share also dropped to Rs5.82 from Rs8.41, reflecting the pressure of narrowing interest margins and reduced investment gains.
According to the financial results released to the Pakistan Stock Exchange (PSX), the bank’s total income for the reporting period fell 29.57% year-on-year to Rs63.3 billion, down from Rs89.9 billion last year. This decline was primarily attributed to a substantial contraction in net mark-up/interest income and weaker performance in securities trading.
Net mark-up/interest income, which remains the bank’s main revenue driver, plunged by 34.34% to Rs47.5 billion from Rs72.4 billion a year earlier. The bank’s mark-up and return earnings dropped sharply by 43.91% to Rs69.4 billion, while the mark-up and interest expense fell by 57.42% to Rs21.8 billion. The decline in interest income was largely due to reduced yields on government securities and a more conservative asset mix amid changing monetary conditions.
Non mark-up/interest income also saw a modest contraction, slipping 9.82% to Rs15.8 billion compared to Rs17.5 billion in the same period last year. However, within this category, fee and commission income demonstrated resilience, rising by 20.12% to Rs6.08 billion, reflecting the bank’s growing focus on transaction and advisory services. Dividend income also improved by 40.85% to Rs140.8 million, while other income nearly doubled to Rs104.0 million, marking an 83.45% rise.
In contrast, trading-related revenues weakened, with income from derivatives falling 45.07% to Rs695.3 million and gains on securities down 43.85% to Rs2.25 billion. Foreign exchange income also dipped slightly by 7.12% to Rs6.51 billion as market volatility eased compared to last year’s fluctuations.
On the cost side, the bank’s operating expenses increased 15.13% to Rs16.9 billion due to higher staff costs and technology-related investments aimed at supporting its digital transformation agenda. The workers’ welfare fund allocation declined by 36.16% to Rs940.8 million, while other charges saw a notable drop of 96.57% to just Rs2.3 million.
As a result, total non mark-up/interest expenses rose by 10.01% to Rs17.8 billion. The bank’s profit before credit loss allowances dropped by 38.27% to Rs45.5 billion, compared to Rs73.7 billion last year. However, credit loss provisions and write-offs improved significantly, decreasing by 66.97% to Rs608.9 million from Rs1.84 billion, signaling better asset quality and prudent risk management.
Standard Chartered’s profit before taxation declined 38.97% year-on-year to Rs46.1 billion, while taxation expenses dropped by 45.21% to Rs23.5 billion, providing some relief to bottom-line profitability. The final profit after taxation settled at Rs22.5 billion, marking one of the steepest earnings contractions for the bank in recent years.
Despite the weaker results, the bank maintained a strong liquidity profile and continued to invest in expanding its digital and corporate banking segments. Industry analysts note that the decline in profitability reflects a broader banking sector trend driven by tightening spreads, high-cost liabilities, and reduced investment gains amid evolving monetary dynamics.
Standard Chartered Bank Pakistan remains a key player in the local financial ecosystem, serving retail, corporate, and institutional clients as part of the global Standard Chartered Group. The bank’s strategic focus on digitization, sustainability, and customer experience is expected to support long-term resilience despite short-term profitability pressures.
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