The Bank reported a Profit before tax of PKR 4.1 billion compared to PKR 4.9 billion for the same period last year. Revenue was lower by PKR 942 million primarily due to reduced margins. The impact of margin compression on revenue was partially offset by a stable non-funded income and decreasing cost of funds. Administrative costs continue to be well managed through operational efficiencies and disciplined spending, leading to a 1per cent decrease from Q1 2016.
Further, strong recoveries of bad debts, coupled with lower impairments led to a net release of PKR 340 million in the current period.
All businesses have positive momentum in client income with strong growth in underlying drivers. This is evident from a pickup in advances, which have grown by 21per cent since the start of this year. This was the result of a targeted strategy to build profitable, high quality and sustainable portfolios. With a diversified client base, the Bank is well positioned to cater for the needs of its clients.
On the liabilities side, the bank’s total deposits grew by 3per cent since the start of this year. The continuous increase in low cost deposits has significantly supported the Bank’s performance with current and savings accounts comprising 92per cent of the deposit base.
Commenting on the results Shazad Dada, Chief Executive, Standard Chartered Bank (Pakistan) Limited, said, “These results demonstrate the diversity and resilience of our business. We will continue to make investments in our people and infrastructure to grow safely and capture the business opportunities in the country. Having worked hard to secure our foundations we are now focused on realising their potential. We are fully committed to delivering sustained growth by consistently focusing on our clients and product suite to bring to them best in class services.”