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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Posted on: 2024-02-23T17:01:50+05:00
