KARACHI: Standard Chartered Bank (Pakistan) Limited on Thursday posted its profit before tax of Rs 10.6 billion in first nine months of 2017 compared to Rs 12.1 billion in the corresponding period last year.
Revenue was lower by Rs 1.4 billion primarily due to reduced margins and re-pricing within the investments portfolio. However, client revenue across all segments has increased and is up by 10 per cent year on year. Administrative costs continue to be well managed through operational efficiencies and disciplined spending with in-country cost decreasing by 1 per cent from comparative period last year.
A historic milestone was achieved in this period whereby the bank’s total assets crossed over Rs 500 billion. All businesses have positive momentum in client income with strong growth in underlying drivers. This is evident from the pickup in net advances, which have grown by 19 per cent since the start of 2017. With a diversified product base, the bank is well positioned to cater to the needs of its clients.
On the liabilities side, the bank’s total deposits grew by 7 per cent, whereas current and saving accounts grew by 5 per cent since the start of this year. The continuous increase in low-cost deposits has significantly supported the bank’s performance with current and savings accounts comprising 92 per cent of the deposit base.
Commenting on the results, Standard Chartered Bank Chief Executive Officer Shazad Dada said, “We have had encouraging progress in 2017, in which we have re-engaged with our clients, continued to invest in our people, culture, infrastructure and digital platforms. We have also made steady progress in further strengthening our control and compliance environment. We are well capitalised, highly liquid and are becoming stronger, leaner and more efficient. This year a historic milestone has been achieved whereby the bank’s total assets crossed over Rs 500 billion.”