LAHORE: Standard Chartered Pakistan announced its annual results for the year ended 31 December 2017, on Friday.
Profit before tax was Rs13.5 billion which is down 12.33 per cent from last year.
Revenue was lower by Rs1.1 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 11 per cent year on year. The impact of margin compression on revenue was partially offset by growing non-funded income and decreasing cost of funds.
Administrative costs continue to be well managed through operational efficiencies and disciplined spending with a decrease of 4 per cent from last year.
A historic milestone was achieved in this period whereby the bank’s total assets crossed over Rs500 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 21 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 3 per cent, whereas current and saving accounts grew by 1 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.
Final cash dividend of 10 per cent (Rs1 per share) has been recommended by the Board of Directors for approval at the 12th Annual General Meeting of the bank’s shareholders. This is in addition to 7.5 per cent (Rs0.75 per share) interim cash dividend paid during the year.
Commenting on the results, Standard Chartered Pakistan Chief Executive Officer 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 closely monitoring cost and risk management. This ensures that returns continue to grow at a sustainable level. This year a historic milestone has been achieved where by the bank’s total assets crossed over Rs500 billion. 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.”
