August 25, 2020 (MLN): Standard Chartered Bank (Pakistan) Limited (SCBPL) has unveiled its financial results for 1HCY20 ended on June 20, 2020, as per which, the bank has reported a significant increase of 36% YoY in net profits which clocked in at Rs 9.85 billion (EPS: Rs 2.54) against net profits of Rs 7.23 billion of the same period last year.
The improvement in net earnings was mainly attributable to a rise in Net interest income (NII), up by 19% YoY.
The bank’s interest income rose 29%YoY in 1HCY20 but a greater percentage increase in interest expense by 41% YoY restricted the growth in bank’s net interest income (NII) to 19% YoY during the said period.
According to the financial results issued by the bank, during the period under review, non-funded income (NFI) of the bank jumped up by 41.55% YoY mainly on account of huge capital gains (up by 4.7 times YoY) and higher-income derivatives of Rs 990 million (up by 4.2 times YoY) despite a 21% YoY decline in fee and commission income.
However, the provisioning charges of Rs 1.27 billion reduced the favorable impact of NII and NFI to a certain extent. In 1HCY20, the bank paid taxes worth Rs 6.4 billion, up by 13% YoY.
|
Profit and Loss Account for the Half-year ended June 30, 2020 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-20 |
Jun-19 |
% Change |
|
Mark-up/return/interest earned |
30,218,323 |
23,435,783 |
28.94% |
|
Mark-up/return/interest expenses |
(14,684,273) |
(10,395,904) |
41.25% |
|
Net mark-up/return/interest income |
15,534,050 |
13,039,879 |
19.13% |
|
NON-MARK-UP/NON-INTEREST INCOME |
|
|
|
|
Fees and commission income |
1,676,577 |
2,115,490 |
-20.75% |
|
Dividend income |
– |
– |
|
|
Foreign exchange income |
2,602,274 |
2,668,539 |
-2.48% |
|
Income / (loss) from derivatives |
990,614 |
233,598 |
324.07% |
|
Gain / (loss) on securities |
2,689,887 |
567,187 |
374.25% |
|
Other income |
14,978 |
48,586 |
-69.17% |
|
Total non-mark-up/ non-interest income |
7,974,330 |
5,633,400 |
41.55% |
|
Total Income |
23,508,380 |
18,673,279 |
25.89% |
|
NON-MARK-UP/NON-INTEREST EXPENSES |
|
|
|
|
Operating expenses |
(5,615,895) |
(5,377,868) |
4.43% |
|
Workers welfare fund |
(363,495) |
(388,989) |
-6.55% |
|
Other charges |
(2,885) |
(21,393) |
-86.51% |
|
Total non-mark-up/ non-interest expenses |
(5,982,275) |
(5,788,250) |
3.35% |
|
Profit before provisions |
17,526,105 |
12,885,029 |
36.02% |
|
(Provisions) / recovery and write offs – net |
(1,274,189) |
13,108 |
– |
|
Extraordinary/unusual items |
– |
– |
|
|
Profit before taxation |
16,251,916 |
12,898,137 |
26.00% |
|
Taxation |
(6,400,989) |
(5,666,677) |
12.96% |
|
Profit after taxation |
9,850,927 |
7,231,460 |
36.22% |
|
Basic/Diluted Earnings per share |
2.54 |
1.87 |
35.83% |
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