Standard Chartered reports 2.15x YoY profit surge in 2023, declares 25% additional dividend

MG News | February 23, 2024 at 05:01 PM GMT+05:00

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February 23, 2024 (MLN): Standard Chartered Bank (Pak) Ltd (PSX: SCBPL) announced its results for 2023 wherein the bank’s net profit soared by 2.15x YoY to Rs42.62 billion [EPS: Rs11.01] compared to Rs19.84bn [EPS: Rs5.13] in the same period last year (SPLY).

To reward shareholders for this remarkable performance, the Board of Directors (BoD) of SCBPL has recommended a final cash dividend of Rs2.5 per share i.e. 25%.

This is in addition to the 65% cumulative interim dividend already paid in 2023.

Going by the income statement made available by the bank on the PSX, the bank witnessed an increase of 2.11x YoY in its markup interest income to clock in at Rs94.16bn against Rs44.6bn recorded in 2022.

The primary factor for the boost in the bank’s earnings is interest earnings as the non-markup interest income contracted by 26.17% YoY to Rs13.32bn as compared to Rs18.05bn reported in SPLY.

TThe decline was primarily attributed to a substantial drop in foreign exchange income, which plummeted by 40.12% YoY to Rs5.71bn in 2023.

In addition, SCBPL incurred a loss on securities of Rs996.16m, compared to a gain of Rs2.27bn in 2022.

The profit and loss statement further shows that 2023’ total non-mark-up/interest expenses stood at Rs18.43bn, up by 33.08% YoY.

Under the non-markup expenses, all three heads, namely; Operating expenses, Worker’s welfare fund and other charges surged during the review period.

SCBP also incurred a provision reversal of Rs162.72m in 2023, down 87.67% YoY compared to reversal of Rs1.32bn in 2022.

On the taxation front, the bank paid Rs46.6bn, 53.9% YoY higher than the Rs30.28bn paid in SPLY.

Profit and Loss Account for the year ended December 31, 2023 ('000 Rupees)
	Dec-23	Dec-22	% Change
Mark-up/return/interest earned	151,851,124	90,430,254	67.92%
Mark-up/return/interest expenses	(57,692,023)	(45,828,352)	25.89%
Net mark-up/return/interest income	94,159,101	44,601,902	111.11%
NON MARK-UP/NON INTEREST INCOME
Fees and commission income	5,519,578	2,992,986	84.42%
Dividend income	50,144	25,927	93.40%
Foreign exchange income	5,712,190	9,538,996	-40.12%
Income / (loss) from derivatives	2,847,820	3,097,930	-8.07%
Gain / (loss) on securities	(996,161)	2,266,039	-143.96%
Other income	191,392	125,663	52.31%
Total non-mark-up/ non-interest income	13,324,963	18,047,541	-26.17%
Total Income	107,484,064	62,649,443	71.56%
NON MARK-UP/NON INTEREST EXPENSES
Operating expenses	(16,484,568)	(12,810,591)	28.68%
Workers welfare fund	(1,797,954)	(1,022,926)	75.77%
Other charges	(143,055)	(11,919)	1100.23%
Total non-mark-up/ non-interest expenses	(18,425,577)	(13,845,436)	33.08%
Profit before provisions	89,058,487	48,804,007	82.48%
(Provisions) / recovery and write offs - net	162,719	1,319,492	-87.67%
Extraordinary/unusual items	-	-
Profit before taxation	89,221,206	50,123,499	78.00%
Taxation	(46,599,375)	(30,279,124)	53.90%
Profit after taxation	42,621,831	19,844,375	114.78%
Basic/Diluted Earnings per share	11.01	5.13	-

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