SCBPL 1HCY26 profit drops 29%

August 21, 2026 (MLN): Standard Chartered Bank (Pakistan) Limited (PSX: SCBPL) reported a 29% decline in its net profit for the half-year ended June 30, 2026 (1HCY26), recording Rs11.78bn compared to Rs16.56bn in the corresponding period last year.

Alongside the financial results, the bank announced an interim cash dividend of Rs3.00 per share.

Reflecting this bottom-line compression, basic and diluted earnings per share (EPS) fell to Rs3.04 for the six-month period, down from Rs4.28 in 1HCY25.

The primary factor dragging overall performance was a contraction in core net mark-up income coupled with lower non-interest revenues.

Mark-up/interest earned fell by 25% to Rs36.43bn, while mark-up expensed contracted by 38% to Rs10.12bn.

Consequently, net mark-up income dropped by 19% year-on-year, settling at Rs26.30bn compared to Rs32.47bn in 1HCY25.

On the non-interest front, total non-mark-up income dropped 29% to Rs8.50bn (down from Rs11.93bn). T

his contraction was driven by net losses on securities of Rs574.94m (compared to gains of Rs2.04bn last year) and a 35% decline in fee and commission income (Rs3.06bn), which offset a 22% increase in foreign exchange income (Rs5.31bn) and a 218% surge in other income (Rs292.97m).

Driven by core spread compression, total income contracted by 22% to Rs34.81bn.

On the expense side, the bank demonstrated strict operational discipline.

Operating expenses fell 4% to Rs11.01bn, helping reduce total non-mark-up expenses by 5% to Rs11.53bn.

Consequently, profit before credit loss allowance fell 28% to Rs23.27bn.

Below the pre-provision line, SCBPL recorded a higher net credit loss allowance reversal of Rs1.11bn (up 89% from Rs587.22m in 1HCY25). This provision reversal helped cushion pre-tax earnings, leaving profit before taxation down 26% at Rs24.38bn.

The bank absorbed a 23% lighter taxation expense of Rs12.60bn (down from Rs16.34bn in 1HCY25).

Supported by reduced tax outlays, disciplined cost control, and strong provision reversals, Standard Chartered Bank (Pakistan) Limited securely closed the six-month period with its net profit standing at Rs11.78bn.

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