KARACHI: Standard Chartered Bank (Pakistan) Limited reported a resilient financial performance for the first half of 2025, posting a profit before tax of Rs 32.9 billion — although lower than Rs 49.3 billion in the same period last year.
The bank recorded total revenue of Rs 44.4 billion, down 24 percent from H1 2024, primarily due to a reduction in interest rates. This decline was partially offset by higher non-funded income and a lower cost of funds. Despite a 13 percent rise in expenses, driven by inflation, investments in infrastructure, and human capital, Standard Chartered Pakistan maintained an efficient cost-to-income ratio of 27 percent. A prudent risk approach and recoveries from bad debts contributed to a net release of Rs 0.6 billion during the period.
On the liabilities side, total deposits stood at Rs 697 billion, reflecting a 17% decrease since the start of the year. The decline was part of a deposit optimization initiative that also improved the current account mix to 59 percent of the deposit book, up from 48 percent last year. On the assets side, net advances grew by Rs 39 billion, or 23 percent, reflecting an uptick in economic activity.
The bank said it continued to invest in digital capabilities and infrastructure to enhance customer experience, while strengthening its control and compliance environment through focus on people, culture, and systems. Standard Chartered Pakistan aims to sustain growth by concentrating on client needs, product diversification, and a prudent balance sheet strategy, it further added.
Financially, the bank reported a strong Return on Equity (ROE) of 28.8 percent and a Capital Adequacy Ratio (CAR) of 21.5 percent, positioning it well for future expansion. The Board of Directors declared an interim cash dividend of 35 percent or Rs 3.50 per share, for the half-year ended June 30, 2025.
Commenting on the results, Rehan Shaikh, CEO & Head of Coverage, Standard Chartered Bank (Pakistan), said that bank’s first half 2025 results demonstrate its strong business fundamentals. While macroeconomic factors have impacted short-term performance, Standard Chartered Pakistan remains steady with a robust balance sheet, diversified portfolio, and deep client relationships.
The bank also highlighted its social initiatives during H1 2025, including the launch of the SC Women in Tech Program to address gender disparity in the technology sector. The Goal Accelerator Program, a sport-powered initiative, continues to empower disadvantaged girls and young women economically. Additionally, the bank partnered with Karachi United to host the Seventh Youth League Football Tournament, promoting sports among children for the seventh consecutive year.
Copyright Business Recorder, 2025
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