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

Standard Chartered reports 2.15x YoY profit surge in 2023
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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%
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%
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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Posted on: 2024-02-23T17:01:50+05:00