Standard Chartered Bank (Pakistan) Limited has announced profits and income for the year 2012.
The bank’s profit (before tax) has grown by 8 percent to Rs 9.1 billion in 2012, with earnings per share up at PKR 1.53 per share from PKR 1.41 per share in 2011. Revenue has been resilient at PKR 26.8 billion despite reduction in net interest margins.
The bank continues to deliver consistent financial performance despite a challenging business environment and significant reduction in interest rates. Strategy of focused growth, improved cost discipline and prudent credit expansion has been successfully executed resulting in improved financial performance with steady revenue and reducing net provisions which were 20 percent lower than the same period last year.
Administrative costs increased by only 4.7 percent despite ongoing inflation and investments in the franchise. The cost to income ratio however remained more or less the same at 52 percent.
Income from consumer banking is stable and focus is on prudently building SME and retail assets portfolio while further enhancing a diversified cost effective retail liabilities base. Wholesale Banking income was slightly impacted due to the reduction in interest rates resulting in lower Net Interest Margins. However enhanced focus on Corporate Finance and Trading activities resulted in mitigating most of this impact.
Commenting on the results, Standard Chartered CEO Mohsin Nathani said, “Despite the challenging external environment, these results demonstrate our commitment to delivering consistent and sustained performance.”
