Maintaining a modest annual profit growth of 4.4 percent, Standard Chartered Bank achieved a profit of Rs. 13.7 billion in 2021 compared to Rs. 13.13 billion profit reported in 2020.
According to the financial results, the bank’s performance was driven by strong balance sheet growth, continued productivity improvements and risk discipline.
Despite investment in infrastructure and inflationary pressures, administrative costs continue to be well managed through operational efficiencies and disciplined spending, resulting in a decrease of three percent on a year-on-year basis. Moreover, strong recoveries and lower impairments as a result of a prudent risk approach led to a net charge of Rs. 0.5 billion compared to a net charge of Rs. 4.9 billion in the comparative period.
All businesses have positive momentum with strong growth in underlying drivers. This is evident from the pickup in net advances, which have grown by Rs. 56 billion (up 31 percent) since the start of the year. This was a result of a targeted strategy to build profitable, high-quality and sustainable portfolios. With a diversified product base, the bank is well-positioned to cater to the needs of its clients. On the liabilities side, the bank’s total deposits grew by Rs. 70 billion (up 13 percent), whereas current and saving accounts grew by Rs. 63 billion (up 12 percent) since the start of the year and comprised 92 percent of the deposit base.
The bank continued to make good progress against its strategic priorities. The global network differentiates the bank for its clients, bringing forth innovative solutions, product specialization, and structured offshore offerings. The bank strives to maximize the contribution towards the State Bank of Pakistan initiatives on promoting housing finance and is consistently ranked among the top three. As of now, over Rs. 3 billion have been dispersed under the Mera Pakistan Mera Ghar scheme.
Standard Chartered Bank (Pak) Limited is also among the top five contributors toward the Roshan Digital initiative and channeled remittances of over $320 million since inception and contributed $270 million to the investments in Naya Pakistan Certificate (NPC). The bank is the first in the industry to offer Raast payment services to clients through all three channels i.e. over the counter, mobile app and online banking.
Standard Chartered has continued to invest in technological advancements and digital infrastructure to provide further convenience and cyber security to clients’ digital transactions. With the launch of its digital bank, Standard Chartered is now able to reach more clients across the country and provide them with digital banking services that have now enabled clients to open current or saving accounts through biometric-enabled mobile app.
The app also offers the convenience to activate debit/credit cards and foreign exchange conversion. Plans are also in place to offer a host of other products and services that bring more accessibility to clients.
Commenting on the results, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited, Rehan Shaikh said,
I am pleased to announce our results for the year 2021. They demonstrate strong foundations and a clear path towards delivering on our strategic priorities. The new ways of working introduced by the Bank are delivering concrete outcomes in terms of productivity and our approach to business. Our pivot to digital continues to result in greater efficiency and growth in underlying drivers while positioning the Bank for the future.
Source: Pro Pakistan