Standard Chartered Bank (SCB Pakistan) posted its profit after tax (PAT) of Rs 9.6 billion, up by 4 per cent in 2016 as compared to last year.
The bank delivered resilient financial performance with Profit before Tax (PBT) of Rs 15.3 billion compared to Rs 15.4 billion in 2015. Revenue decreased to Rs 2.9 billion, primarily due to reduced margins.
Administrative costs continue to be well managed through operational efficiencies and disciplined spending, leading to a 1 per cent decrease from comparative year. Moreover, strong recoveries of bad debts, coupled with lower impairments led to a net release of Rs 1.1 billion in the current year. Resultantly, PAT has increased by 4 per cent year on year.
Advances grew by 5 per cent since the start of this year and on the liabilities side, the bank’s total deposits grew by 12 per cent. The continuous increase in low-cost deposits has significantly supported the bank’s performance with current and savings accounts comprising 94 per cent of the deposit base.
The bank continues to invest in its digital capabilities and infrastructure, enhancing banking experience through the introduction of innovative digital solutions. It is fully committed to sustained growth by consistently focusing on its clients and product suite along with a prudent approach to building the balance sheet while bringing the best in class services to its client base.
The final cash dividend of 12.50 per cent (Rs 1.25 per share) has been recommended by the Board of Directors for approval at the Eleventh Annual General Meeting of the Bank’s shareholders.
Commenting on the results, Chief Executive SCB Shazad Dada said, “These results further demonstrate our commitment to delivering a consistent and sustained performance. Having strengthened our foundations on controls and conduct, we recognise the importance of re-energising growth with a focus on income whilst keeping strong cost and risk management. This ensures that returns continue to grow at a sustainable level. The external environment remains challenging and we are committed to improving our performance whilst ensuring our clients’ needs are at the heart of everything we do.”
Standard Chartered PLC (the Group) announced its result on December 31, 2016, in which it announced an operating income of $13.8 billion down 11 per cent but stable through each quarter of 2016.
The profit before tax of $1.1 billion up from $0.8 billion in 2015, while operating expenses of $10.0 billion down 5 per cent and lower for the second year running
Gross cost efficiencies of over $1.2 billion created capacity to increase investment in the second half and loan impairment in the ongoing business of $2.4 billion was flat like-for-like but remains elevated, the bank said.
Restructuring charges of $855 million related primarily to the liquidation portfolio and redundancy costs and statutory profit before tax of $409 million compared to a loss of $1.5 billion in 2015
“We made good progress in 2016, cleaning up our balance sheet and fortifying our capital position. We are attacking our cost base, reinvesting significantly to strengthen our competitive advantages and continuing to enhance our financial crime controls. Our financial returns are not yet where they need to be and do not reflect the Group’s earnings potential. Having worked hard to secure our foundations we are now focused on realising that potential.” Bill Winters, Group Chief Executive, Standard Chartered PLC.
