Standard Chartered Pakistan reports Rs17bn pre-tax profit

KARACHI: Standard Chartered Bank Pakistan Limited posted a profit before tax of Rs17 billion in the first quarter of 2025, compared with Rs24.7 billion in the same period last year, a statement said on Friday.

The bank posted revenue of Rs23.1 billion, lower by Rs6.4 billion, primarily due to a sharp reduction in interest rates. This was partially offset by an increase in non-funded income and a decrease in the cost of funds. While expenses increased 11 per cent on the back of inflation and investment in infrastructure and people, the bank continues to lead the industry with the lowest cost-to-income ratio of 25 per cent. A prudent risk approach and recoveries of bad debts led to a benign charge of Rs0.3 billion during the year. On the liabilities side, the bank’s total deposits stood at Rs726 billion, down by 13 per cent from the start of the year. The bank’s deposit mix improved with current accounts now constituting 54 percent of the deposit book, compared with 48 per cent last year. On the assets side, net advances recorded a strong growth of Rs54 billion, or 31 per cent, during the first quarter of this year, reflecting a pick-up in economic momentum.

With a healthy return on equity of 28.9 per cent for the period and a capital adequacy ratio of 19 per cent, the bank remains well-positioned for future growth.

Chief Executive Officer and Head of Coverage at Standard Chartered Bank Pakistan Rehan Shaikh said, “[The] results reflect a resilient start to the year underpinned by prudent risk management, disciplined execution, and continued trust from our clients. The current lower interest rate environment has supported a healthy uptick in lending, which bodes well for business expansion. We have seen encouraging momentum across key segments and remain focused on delivering sustainable growth and contributing meaningfully to Pakistan’s economy.”