Declining rates cause revenue and profit slump at Standard Chartered Pakistan

A steep fall in domestic interest rates has knocked a visible hole in Standard Chartered Bank (Pakistan) Ltd’s top line for the first half of calendar 2025, with net interest income sliding 33% year‑on‑year to Rs32.5 billion as mark‑up revenue fell 41%. While non‑funded income rose 21% to Rs11.9 billion on the back of fees, gains on securities and derivatives, it was not enough to offset the pressure on margins. Total income contracted 24% to Rs44.4 billion.

Profit before tax fell 33% to Rs32.9 billion, and profit after tax declined 23% to Rs16.6 billion; earnings per share were roughly Rs4.3 versus Rs5.6 in the same period last year. The bank nevertheless maintained its cash‑payout rhythm with an interim dividend of Rs3.5 per share. 

Costs moved higher but remained tightly contained relative to peers. Operating expenses increased 17% year‑on‑year; even so, the cost‑to‑income ratio was 27.2%, still among the best in the sector, while return on equity eased to 28.8% from 43.8% a year earlier. Management commentary in the briefing suggested most of the earnings impact from monetary easing was concentrated in the second quarter; further sizeable cuts are not anticipated, which could stabilise margins in coming quarters.