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Standard Chartered Bank (Pakistan) Limited delivered a resilient financial performance with a profit before tax of PKR 32.9bn compared to PKR 49.3bn in H1’24.
The Bank posted a revenue of PKR 44.4 bn lower by 24% compared to H1’24, primarily due to a sharp reduction in interest rates. This was partially offset by an increase in non-funded income and a decrease in cost of funds. While expenses increased 13% on the back of inflation, investment in infrastructure and its people, the Bank continues to maintain an efficient cost to income ratio of 27%. A prudent risk approach and recoveries of bad debts led to a net release of PKR 0.6bn during the period.
On the liabilities side the Bank’s total deposits stood at PKR 697 billion down 17% from the start of the year. This was driven by a deposit optimisation initiative which is reflected in the improved current accounts mix comprising 59% of the deposit book as compared to 48% last year. On the assets side, net advances were higher by PKR 39bn or 23% during H1’25, reflecting a pick-up in economic momentum.
The Bank is investing in its digital capabilities and infrastructure to enhance our clients’ banking experience. We have made steady progress in further strengthening our control and compliance environment by focusing on our people, culture, and systems. We are fully committed to sustained growth by consistently focusing on our clients and product suite along with a prudent approach to building the balance sheet while bringing the best-in-class services to our customers. The Bank is well placed to cater for the needs of its clients and will continue its strategy to build a profitable, efficient and sustainable portfolio.
With a healthy Return on Equity (ROE) of 28.8% for the period and a Capital Adequacy Ratio (CAR) of 21.5%, the Bank remains well positioned for future growth. The Board of Directors were pleased to announce an interim cash dividend of 35% (PKR 3.50/- per share) in respect of the half year ended June 30, 2025.
Commenting on the results, Rehan Shaikh, CEO & Head of Coverage, Standard Chartered Bank (Pakistan) Limited said: “Our H1 2025 results demonstrate our strong business fundamentals. We recognise the challenging times ahead and are committed to supporting our clients and employees. While macroeconomic variables have had an impact on short-term performance, Standard Chartered Pakistan remains steady with a robust balance sheet, a diversified portfolio and deep client relationships. I am thankful to our shareholders, clients, and business partners for their continued trust in our capabilities.”
The Bank’s efforts in making a difference in the communities it works in are underscored through a variety of initiatives in H1’25. Through the launch of the SC Women in Tech Programme, Bank continues to address gender disparity in the technology sector. Through the Goal Accelerator Programme, a sport-powered initiative, Bank works to create concrete pathways for disadvantaged girls and young women to become economically resilient. The Bank has also partnered with Karachi United and launched the Seventh Youth League Football Tournament to promote sports amongst children for the seventh year in a row.
