Standard Chartered Bank Pakistan Limited (SCBPL) reported a strong Q1 2024, showcasing significant growth across financial metrics. Profit before tax surged a staggering 53% to Rs. 24.7 billion, while profit after tax grew by 22.2% to Rs. 11.23 billion year-over-year.
Overall revenue jumped 44%, driven by a 36% increase in client revenue across all segments. Despite a 22% rise in operating expenses due to inflation, SCBPL impressively maintained its industry-leading low cost-to-income ratio of 17%.
SCBPL’s prudent risk management approach led to a net release of Rs. 0.5 billion in Q1 2024 compared to a net charge of Rs. 0.2 billion in the same period last year.
Deposits reached Rs. 765 billion, an increase of Rs. 45 billion. Current accounts saw healthy growth, reaching Rs. 33 billion and making up 52% of the deposit base. However, net advances slightly decreased by Rs. 11 billion or 5% since the beginning of the year.
The bank is actively investing in digital capabilities and infrastructure to enhance customer experiences through innovative solutions. This focus positions SCBPL to effectively meet client needs and build a profitable, efficient, and sustainable portfolio.
Rehan Shaikh, Chief Executive Officer of SCBPL, attributed the excellent Q1 performance to the team’s dedication and commitment to excellence. He highlighted their relentless pursuit of success in serving customers and driving growth.
With a strong Return on Equity (ROE) of 47% and a Capital Adequacy Ratio (CAR) of 18.31%, SCBPL remains well-positioned for continued growth. The Board of Directors announced an interim cash dividend of 15.0% (Rs. 1.50/- per share) for the quarter ending March 31, 2024, reflecting confidence in the bank’s performance and future outlook.