SCBPL CY25 profit sinks 38%

February 26, 2026 (MLN): Standard Chartered Bank (Pakistan) Limited (PSX:SCBPL) reported a net profit of Rs28.78bn for the year ended December 31, 2025, a 38% decrease from the Rs46.07bn profit recorded in the prior year.

The bank's earnings per share fell to Rs7.43 from Rs11.90 in the corresponding period of the previous year.

Alongside the financial results, the Board of Directors recommended a final cash dividend of Rs3.00 per share (30%) for the year. This is in addition to the 35% interim dividend already paid in 2025.

The bank's mark-up, return, or interest earned declined by 44% year-on-year to Rs88.81bn from Rs159.13bn.

Mark-up, return, or interest expensed also saw a sharp decrease of 58%, dropping to Rs27.35bn from Rs65.62bn.

However, the steeper absolute drop in interest earned meant that net mark-up/interest income fell 34% to Rs61.46bn from Rs93.51bn in the prior period.

Breaking down the non-mark-up/interest income, fee and commission income rose 5% to Rs7.32bn from Rs6.99bn, and dividend income increased 41% to Rs140.85m from Rs100m.

However, these were offset by a 10% drop in foreign exchange income to Rs8.88bn from Rs9.92bn, a 46% decline in income from derivatives to Rs610.19m from Rs1.13bn, a steep 79% plunge in gain on securities to Rs973.67m from Rs4.60bn, and a 39% decrease in other income to Rs1.17bn from Rs1.92bn.

Consequently, total non-mark-up/interest income decreased 23% to Rs19.09bn from Rs24.66bn, dragging total income down 32% to Rs80.55bn from Rs118.17bn.

On the expense side, operating expenses increased 11% to Rs22.66bn from Rs20.35bn.

Meanwhile, the workers' welfare fund provision dropped 42% to Rs1.19bn from Rs2.04bn, and other charges plummeted 80% to Rs13.98m from Rs71.04m.

Overall, total non-mark-up/interest expenses rose 6% to Rs23.87bn from Rs22.46bn.

Profit before taxation reached Rs58.49bn, down 42% from Rs100.62bn in the prior period.

The bank recorded a taxation expense of Rs29.71bn, down 46% from Rs54.55bn in the corresponding period last year.

Ultimately, the 38% contraction in bottom-line profitability was driven by a substantial decline in both mark-up and key non-mark-up income streams, coupled with rising operating overheads.

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