SCBPL reports 12.5% profit drop in third quarter

October 29, 2024 (MLN): Standard Chartered Bank (Pakistan) Ltd (PSX: SCBPL) reported a 12.51% decline in third-quarter earnings, with profit after tax falling to Rs11.08 billion [EPS: Rs2.86], compared to Rs12.66bn [EPS: Rs3.27] in the same period last year (SPLY).

According to the income statement made available by the bank on the PSX, the bank's markup interest income decreased 7.46% to Rs23.95bn, compared to Rs25.88bn recorded in Q3 2024.

On the other hand, SCBPL saw an extraordinary spike in its non-markup income, which surged from Rs4..41 in Q3CY24 to Rs7.61bn in Q3 2024.

The rise is attributed to a major improvement in its derivatives income and gain from securities.

Nonetheless, the decline in interest income, coupled with rising expenses and taxation, weighed on the bank and led to a drop in profits.

The profit and loss statement shows that the total non-mark-up/interest expenses stood at Rs5.39bn, up by 12.06% YoY.

Under the non-markup expenses, all sub-headers surged during the review period.

SCBP also incurred a provision reversal of Rs71.68m, compared to a provision expense of Rs627.07m recorded in Q3 2023.

On the taxation front, the bank paid Rs15.17bn, 24.3% YoY higher than the amount paid in SPLY.

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