Standard Chartered Bank (Pakistan) Limited (SCBPL) has released its half-yearly financial performance for calendar year 2025, reporting a notable 23 percent decline in net profit compared to the same period last year. The results underscore the impact of a challenging operating landscape marked by sector-wide volatility, changing interest rate dynamics, and elevated cost pressures.
According to unaudited results submitted to the Pakistan Stock Exchange (PSX), SCBPL posted a profit after tax of Rs 16.56 billion for the six months ending June 30, 2025, compared with Rs 21.48 billion in the first half of 2024. Earnings per share dropped to Rs 4.28, down from Rs 5.55 in the previous year, reflecting the bank’s struggle to sustain profitability amid shifting market conditions.
Despite the decline in profit, the Board of Directors recommended an interim cash dividend of 35 percent, equivalent to Rs 3.5 per share of Rs 10 each, for the year ending December 31, 2025. This decision was announced following a board meeting held on August 25, 2025, at the bank’s main office on I.I. Chundrigar Road, Karachi, signaling SCBPL’s continued commitment to shareholder returns.
A closer look at the financial statements highlights the major drivers of this performance. Net mark-up and interest income fell sharply to Rs 32.47 billion, down from Rs 48.32 billion during the same period in 2024, reflecting reduced spreads and a changing interest rate environment. In contrast, non-markup and non-interest income rose to Rs 12 billion, compared to Rs 9.88 billion a year earlier, showing the bank’s effort to diversify its income streams through fee-based services and treasury operations.
Total income for the first half of 2025 stood at Rs 44.40 billion, compared to Rs 58.20 billion in H1 2024, illustrating the pressure on overall revenues. At the same time, operating expenses climbed to Rs 11.41 billion, up from Rs 9.71 billion in the previous year. This rise was attributed to higher administrative and operational costs, which further tightened profit margins.
On the taxation front, the bank’s income tax payments dropped significantly to Rs 16.34 billion, down from Rs 27.81 billion in the corresponding period last year, providing some relief to net earnings despite the revenue decline.
The financial results reflect the broader challenges facing Pakistan’s banking sector in 2025, including global economic uncertainties, evolving regulatory requirements, and increased competition in both traditional and digital banking services. For SCBPL, the decline in profitability highlights the importance of strategic cost management and continued innovation in revenue diversification.
As the industry moves deeper into digital transformation and faces tighter margins, SCBPL’s ability to balance shareholder payouts with sustainable growth will remain central to its performance in the coming quarters. Market observers note that while profitability has come under pressure, the bank’s dividend policy underlines confidence in long-term fundamentals.