The country’s largest and oldest foreign bank, Standard Chartered Bank (Pakistan) Limited, has announced its annual results for 2020, posting a profit before tax of Rs 23.6 billion.
Despite a substantial decline in interest rates and economic instability due to the pandemic, total sales rose 5 percent and consumer revenue increased by 15 percent year on year. Costs remained well managed and rose year on year by just 4 percent.
The bank retained its conservative risk management policy and reported a Rs 4.9 billion loan impairment fee.
“The risk environment remains heightened and we continue to monitor the portfolio given uncertainties surrounding Covid-19” a press release issued by SCBP on Friday said.
Due to the downturn in economic activity, which affected credit demand, the advances portfolio dropped 15% year over year. The balance sheet of the bank is well capitalized and liquid and is prepared to take advantage of the opportunity to restart economic activity. The Bank will continue to develop a profitable, effective, and sustainable portfolio with a diverse product and client base.
The Bank has hit another milestone on the deposit side, with the highest growth ever of Rs 91 billion, as total deposits surpassed Rs 550 billion. Total deposits closed at year end at Rs 557 billion with a 20 percent increase, while current and saving accounts also grew by 19 percent from the beginning of the year and are now 93 percent of the deposit base. The optimum balance sheet financing arrangement continues to support the efficiency of the Bank.
In 2020, as representative of the Federal Board of Revenue (FBR) and on account of FED/Provincial Sales Taxes, the Bank contributed approximately Rs 12.9 billion to the national exchequer in lieu of direct income taxes.
The Board of Directors has approved a 27.5 percent cash dividend for the year 2020. (Rs 2.75 per share).
Rehan Shaikh, Chief Executive Officer of Standard Chartered Bank (Pakistan) Limited, commented on the results, saying, “I am pleased to announce that the Bank performed well in 2020, yielding a pre-tax profit of Rs 23,6 billion. Our results show that we have a stable business base. We are well prepared to manage our risks, resources, and liquidity effectively now that we have reinforced our foundations on controls and conduct. We would be leaner and fitter to take advantage of the prospects that lie ahead as a result of the cautious and constructive steps we are taking now.”
“We will accelerate our investments in further improving our digital infrastructure as time goes by. These investments will power our future growth engine and will result in major improvements in the way we purchase, service, and deliver goods to our customers.”