KARACHI: Standard Chartered Bank (Pakistan) Limited, the country’s largest and oldest International bank, announced its Annual Results for 2020, declaring a Profit before tax of PKR 23.6 billion, says a Press release.
Overall revenue grew 5per cent and client revenue increased by 15per cent year on year despite significant reduction in interest rates and economic uncertainty due to the pandemic. Costs remained well managed and increased by only 4per cent year on year. The Bank continued to follow a prudent risk approach and booked loan impairment charge of PKR 4.9bn. The risk environment remains heightened and we continue to monitor the portfolio given uncertainties surrounding COVID 19.
On advances side, portfolio declined 15 per cent year on year, due to the slowdown in economic activity which impacted credit demand. Bank’s balance sheet is well capitalised and liquid and is positioned to leverage the opportunity from resumption in economic activity. With a diversified product and client base, the Bank will continue its strategy to build a profitable, efficient and sustainable portfolio.
On the deposits side, the Bank achieved another milestone, with highest ever growth of PKR 91 bn, as total deposits crossed PKR 550bn. At year end, total deposits closed at PKR 557bn with a growth of 20per cent, whereas current and saving accounts also grew by 19per cent from the start of the year and are now 93per cent of the deposit base. The optimal funding structure of the balance sheet continues to support the Bank’s performance.
During 2020, the Bank contributed around PKR 12.9 bn to the national exchequer in lieu of direct income taxes, as an agent of Federal Board of Revenue (FBR) and on account of FED / Provincial Sales Taxes.
For the year 2020, the Board of Directors have recommended a cash dividend of 27.5 per cent (PKR2.75 per share).
Commenting on the results, Mr. Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said,
“I am delighted to announce that the Bank has performed well in 2020, delivering a profit before tax of PKR 23.6bn. Our results demonstrate our strong business fundamentals. Having strengthened our foundations on controls and conduct we are well equipped to manage our risks, capital and liquidity effectively. The prudent and proactive measures that we are taking now will make us leaner and fitter to take advantage of the opportunities that lie ahead.
As we move forward, we will increase our investments in further strengthening our digital infrastructure. These investments will be the fuel for our engine of growth in the future and will drive transformative change in the way we acquire, service and deliver products to our clients.”