- Profit before Tax of PKR 18.4 billion
- Strong growth in net advances of 26 per cent
- Healthy increase in deposits of 7 per cent
- Cost discipline continues with an increase of only 1 per cent
- Effective risk management resulting in net recoveries of PKR 790 million
Standard Chartered Bank (Pakistan) Limited announced its Q3 Results for 2021. The Bank delivered a resilient financial performance in Q3 2021 with year to date Profit before tax of PKR 18.4 billion, compared to PKR 19.9billion in the corresponding period last year.
The Bank achieved revenue in excess of PKR 26 billion, despite challenging external environment and margin compression. While y/y revenue was down, the q/q momentum has picked up with a growth of 10% in Q3’21 compared to same period last year. Administrative costs continue to be well managed through operational efficiencies and disciplined spending resulting in y/y increase of 1% compared to same period last year. Moreover, strong recoveries of bad debts, coupled with lower impairments because of prudent risk approach led to a net release of PKR 0.8 billion in YTD Sep’21 compared to a charge of PKR 3.2 billion in the comparative period.
All businesses have positive momentum with strong growth in underlying drivers. This is evident from pickup in net advances, which have grown by 26% since the start of this year. This was a result of targeted strategy to build profitable, high quality and sustainable portfolios. With a diversified product 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 PKR 40 billion, whereas current and saving accounts grew by PKR 41 billion (up 8%) since the start of this year and comprise 93% of the deposit base. The incremental liquidity generated is currently deployed in government securities and interbank lending thereby resulting in an increase of 7per cent in total assets, which crossed PKR 750 billion milestone to close at PKR 775 billion.
Standard Chartered Bank (Pakistan) continues to make good progress against well-defined strategic priorities. The global network differentiates the Bank for its clients, bringing forth innovative solutions, product specialization and structured offshore offerings. The network advantage has also enabled the Bank to generate over $278M in funding of Roshan Digital Account in addition to carrying out several high-profile transactions for Clients and Government of Pakistan. Facilitating clients through personalised wealth advice based on superior insight has led to an increase in wealth business by 22%. Bank strives to maximise the contribution to SBP initiatives on promoting housing finance. Till date, financing of over PKR 10 Billion has been approved under Mera Pakistan Mera Ghar Scheme with Bank also amongst the first few to cross landmark of PKR 1 Billion in disbursement under the said scheme. Total disbursements are to the tune of ∼PKR 1.7 Billion (As of September 30th, 2021), one of the highest in the industry. The Bank has also continued to make mark on Sustainability front, with execution of several sustainable finance transactions, reduction in its Carbon Footprint and through its community initiatives including Futuremakers programme targeting education, employability, and entrepreneurship.
Bank has continued to invest in technological advancements and digital infrastructure which has and will further scale up the Bank’s mass market potential in addition to strengthening its Cyber Security. Digital transaction mix as well as adoption to digital channels including “SC Mobile” application continue to increase and enhance overall client experience.
Commenting on the results, Mr. Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said, “I am pleased to announce our results for the third quarter 2021. Our results demonstrate strong foundations and a clear path towards delivering on our strategic priorities as we stand committed to the socio-economic prosperity of the people of Pakistan. Over the course of last few months, we have made steady progress on our accelerated transformation journey, further enabling us to take advantage of the opportunities that lie ahead. Our pivot to digital continues to result in greater efficiency and growth in underlying drivers and position the bank for the future. Our control and compliance environment stays well curated. As we proceed, we stand fully committed to play our part in the growth story of Pakistan, deliver timely and sustainable growth for our shareholders and ensure the best in class services and solutions for our clients.”