Standard Chartered Bank (Pakistan) posts Rs18.4bn PBT in Q3 of '21

KARACHI: Standard Chartered Bank (Pakistan) Limited has delivered a resilient financial performance in Q3 2021 with year-to-date profit before tax of Rs 18.4 billion, compared to Rs 19.9 billion in the corresponding period last year.

According to financial results of Q3 Results for 2021, the Bank achieved revenue in excess of Rs 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 percent 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 percent 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 Rs 0.8 billion in YTD Sep'21 compared to a charge of Rs 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 percent 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 Rs 40 billion, whereas current and saving accounts grew by Rs 41 billion (up 8pc) since the start of this year and comprise 93 percent of the deposit base. The incremental liquidity generated is currently deployed in government securities and inter-bank lending thereby resulting in an increase of 7 percent in total assets, which crossed Rs 750 billion milestone to close at Rs 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 $278 million 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 percent. Bank strives to maximise the contribution to SBP initiatives on promoting housing finance. Till date, financing of over Rs 10 billion has been approved under Mera Pakistan Mera Ghar Scheme with Bank also amongst the first few to cross landmark of Rs 1 billion in disbursement under the said scheme. Total disbursements are to the tune of Rs 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 Future makers programme targeting education, employability, and entrepreneurship.

Commenting on the results, 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."

Copyright Business Recorder, 2021