As per the conclusion drawn after a Board of Directors meeting conducted on August 27th 2018, Standard Chartered Bank has gained 3.24% in half yearly profits.
During the meeting, the board discussed the bank’s financial earnings for the half year ended on June 30th 2018 and compared them with the earnings made during the half year ended on June 30th 2017.
According to the bank’s press release, Client revenue has increased by 10% year on year with positive contribution from transaction banking, financial markets and retail deposits.
While administrative costs increased year on year, the spending has been mainly in the Bank’s products, services and people to grow the franchise.
Furthermore, the press release stated that “All businesses have positive momentum in client income with strong growth in underlying drivers. This is evident from pickup in net advances, which have grown by 12per cent since the start of this year. This was a result of targeted strategy to build profitable, high quality and sustainable portfolios.”
Standard Chartered’s Net mark-up/return/interest income after provision increased by 1% while it also witnessed a significant growth of 78% in Income from dealing in foreign currencies causing total non-mark-up/ non-interest income to jump by 6.4%.
On the liabilities side, the Bank’s total deposits grew by 7per cent, whereas current and saving accounts grew by 9per cent since the start of this year.
The continuous increase in low cost deposits has significantly supported the Bank’s performance with current and savings accounts comprising 94per cent of the deposit base.
Although the company’s Total non-mark-up/ non-interest expenses rose by 9%, it still managed to pull up its overall profits from Rs.5 billion to Rs.5.2 billion on year-on-year basis.
Commenting on the results Shazad Dada, Chief Executive, Standard Chartered Bank (Pakistan) Limited, said, “These results demonstrate resilience of our business. Financial performance in H12018 has been steady with encouraging growth in underlying drivers. Our key investment areas are growing well and we are encouraged by our start to 2018, but we are well aware that this franchise is capable of much more. We are now focused relentlessly on building sustained asset & income growth with existing and new clients and are working hard to further optimize our control environment to achieve that.”
The earnings per share are recorded at Rs.1.34 per share.
Profit and Loss Account for the half year ended on June 30th 2018 ('000 Rupees)
Net mark-up/return/interest income
Reversals/(provision) again non-performing loans and advances
Recovery of amounts written off
Provision for diminution in the value of investments
Bad debts written off directly
Net mark-up/return/interest income after provision
NON MARK-UP/NON INTEREST INCOME
Fees, commission and brokerage income
Income from dealing in foreign currencies
Gain on sale of securities – net
Unrealized gain/(loss) on revaluation of investments classified as held for trading
Total non-mark-up/ non-interest income
NON MARK-UP/NON INTEREST EXPENSES
Other reversals/(provisions)/(asset write-offs)
Total non-mark-up/ non-interest expenses
Profit before taxation
Profit after taxation
Basic and diluted earnings per share (Rupees)