Daily Times

Highlights:

* 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.