KARACHI: Standard Chartered Bank (Pakistan) Limited announced its third quarter results. The Bank continues to build on the business momentum despite challenging economic and external environment.
The Bank continues to deliver strong financial performance with nine months profit (before tax) of PKR 11.3 billion resulting in earnings per share of PKR 1.90. This is 63% higher than corresponding period last year.
The decrease in administrative expenses is due to a reversal in executive and general administrative expenses. Excluding this reversal, administrative expenses have moderately increased by 2% which is well below the ongoing inflation in the country. On the other hand, the decline in revenue due to lower interest rates which was partially covered by growth of low cost deposits in the period.
With the Bank’s focus on recoveries, there have been net releases in loan impairments in the nine months of this year. The Bank continues to be disciplined and proactive in its approach to risk management and would appropriately account for any impairment in its past dues on a timely basis.
The deposit momentum continued with a growth of almost 15% since the start of this year. The continuous growth in low cost deposits has significantly supported the bank’s performance with current and savings account now comprising over 92% of the deposits base. This composition and average cost is one of the best in the industry.
Commenting on the results Mohsin Nathani, Chief Executive, Standard Chartered Bank (Pakistan) Limited, said, “The Bank continues to be conservative in balance sheet growth whilst maintaining cost discipline and prudent credit expansion. In the backdrop of the country’s economic challenges and our 150 year presence in Pakistan, we believe in sustained growth by continue focusing on our clients and customers and a prudent approach to building the balance sheet.”