SCBPL reports 22.26% YoY profit growth in Q1, declares Rs1.5 DPS

May 02, 2024 (MLN): Standard Chartered Bank (Pak) Ltd (PSX: SCBPL) has maintained its strong performance, with earnings for the quarter ended March 31, 2024 (Q12024), increasing by 22.26% YoY to Rs11.24 billion [EPS: Rs2.9], compared to a profit of Rs9.19bn [EPS: Rs5.13] recorded in the same period last year (SPLY).

To reward shareholders for this remarkable performance, the Board of Directors (BoD) of SCBPL has recommended am interim cash dividend of Rs1.5 per share i.e. 15%.

Going by the income statement made available by the bank on the PSX, the bank witnessed an increase of 21.92% YoY in its markup interest income to clock in at Rs24.05bn against Rs19.73bn recorded in Q12023.

Although the bank received a positive boost from markup income, the primary driver of improved profitability during this quarter was the extraordinary spike in the bank’s non-markup income, which surged from just Rs702.17 million in Q12023 to Rs5.27bn in Q12024.

The rise is attributed to a major recovery on its securities trading, transitioning towards a gain of Rs1.15bn compared to a loss of Rs2.47bn in Q12023.

The profit and loss statement further shows that the total non-mark-up/interest expenses stood at Rs5.06bn, up by 23.83% YoY.

Under the non-markup expenses, Operating expenses and Worker’s welfare fund ticked up while other charges fell during the review period.

SCBP also incurred a provision reversal of Rs476.76m, compared to a provision expense of Rs196.06m recorded in Q12023.

On the taxation front, the bank paid Rs13.5bn, 94.02% YoY higher than the Rs6.96bn paid in SPLY.

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