Standard Chartered Bank’s profitability mounts by 42.5% YoY in CY19

February 28, 2020 (MLN): Standard Chartered Bank (Pakistan) Limited has announced its financial results for the CY19. As per results, the bank has posted its net earnings of Rs 16 billion (EPS: Rs 4.14), showing an increase of 42.5% against net earnings of Rs 11.23 billion of the same period last year.

The increase in profitability of the bank was mainly attributable to increased Net interest income (NII).

The bank’s interest income went up 67% YoY at Rs 52 billion in CY19 on a back of growth in the bank’s credit offtake. However, interest expense also increased by 94% YoY, thereby curtailing growth in the bank’s net interest income (NII) to 50% YoY during CY19.

During the period under review, bank’s non-funded income (NFI) increased by 12.41%YoY on an account of income from derivatives od Rs 1.17 billion against the loss of Rs 1.33 billion of the preceding year. Moreover, increased gains on securities by 41% YoY also pushed up the non-interest income

The bank’s operating expenses edged higher by 2.2% YoY to stand at Rs 11 billion whereas tax expense increased 55% YoY in CY19.

Alongside financial results, the board of directors has announced a final cash dividend for the year ended Dec 31, 2019, at Rs 1.75 per share of Rs 10 each i.e. 17.5%. This is in addition to the 12.5% interim dividend already paid in 2019.

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