KARACHI:Â Standard Chartered Bank (Pakistan) Limited (SCBPL) reported a profit before tax of Rs 46.1 billion for the nine months ended September 30, 2025, a period marked by a significant compression in interest margins, according to a company filing sent to the Pakistan Stock Exchange (PSX).
The bank’s financial result reflects a 39% decline from the Rs 75.5 billion profit before tax recorded in the same period last year. This was primarily driven by a sharp reduction in revenue, which fell to Rs 63.3 billion from Rs 89.9 billion, as the central bank’s lower policy rate impacted net interest income.
The bank partially offset the revenue decline through a net release of Rs 0.6 billion in credit loss allowances, aided by prudent risk management and strong recoveries. However, total expenses increased by 10% due to inflation and continued investment in digital infrastructure.
A key strategic move was a 21% reduction in total deposits to Rs 662 billion, part of a “deposit optimization initiative” that significantly improved the current account mix to 59% of the deposit book. Conversely, net advances saw a strong 39% growth, increasing by Rs 66 billion since the start of the year, signaling a pick-up in economic activity.
The bank maintained its formidable financial health, with a Capital Adequacy Ratio (CAR) of 19.75%, well above the regulatory requirement. Its liquidity position remains exceptionally strong, with a Liquidity Coverage Ratio of 461.6%.
The Directors’ Report expressed a “cautiously optimistic” outlook, expecting economic recovery to continue while acknowledging challenges from currency volatility and global commodity prices.
