Leading Foreign Bank in Pakistan, Standard Chartered Bank Pakistan Ltd achieved its highest-ever revenue and profit before tax during the first half of 2023, with the industry’s lowest cost-to-income ratio of 18%, resulting in a ROE of 41%, compared to 20% in the same period last year. The Bank also declared its highest-ever interim dividend of PKR 4.00 per share. As of June 2023, the CAR (Capital Adequacy Ratio) stood at a solid 21.1%. Bank Posted Profit After Tax of PKR18.8bn in IH2023 compared to PKR8bn Profit in 1H2022, marking 231% growth on Yearly basis.
SCBPL currently operates a small network of 40 branches throughout Pakistan. As of June 2023, the Bank holds a market share of 1.8% (ranked 14th) in loans and 2.7% (ranked 13th) in deposits. Additionally, the Bank holds the largest share in MNCs and correspondent banking, as well as the largest custody business. It also leads in FX spending and spending per card.
Consumer, Private, and Business Banking contributes 40% to the Bank’s revenues.
Corporate, Commercial & Institutional Banking serves over 1,000 global corporates, 700 local corporates, SMEs, and others, contributing 46% to the Bank’s revenues. Deposits in this segment saw a 7% growth in CY23.
Islamic Banking segment of the bank serves over 190,000 customers across all business segments and contributes 13% to the Bank’s revenues, 28% to advances, and 9% to deposits. The Bank utilizes the Islamic window model in this segment.
As of June 2023, total deposits reached PKR 725.7 billion, showing a slight increase since December 2022. However, there has been a significant shift in the deposit mix, with a 25% growth in current accounts and a 17% and 46% reduction in savings and term deposits, respectively. Consequently, the current deposits-to-total deposits ratio stands at 57%.
On the advances front, growth remained subdued due to unfavorable macroeconomic conditions, with a focus on short-term (70%) trade and working capital lines. The ADR (Advance to Deposit Ratio) stood at approximately 30%, with a total coverage ratio of 99%.
The investment portfolio is well-positioned to benefit from an increase in interest rates, with a weighted average re-pricing profile of around 2 months. In the conventional segment, the portfolio comprises only of T-Bills, while the rest is invested in Sukuk.
Approximately 93% of retail banking transactions have transitioned to digital channels, a significant increase from 35% in 2011.
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