ISLAMABAD (ABC)- Standard Chartered Bank (Pakistan) Limited (SCBPL) has announced a profit-before-tax (PBT) of Rs89.2 billion for the year ended December 31, 2023, with an impressive growth of 78% over the previous calendar year, reports WealthPK.
As per SCBPL’s financial results filed to the Pakistan Stock Exchange, the bank registered a profit-after-tax (PAT) of Rs42.6 billion for CY23 versus PAT of Rs19.8 billion in CY22. The profit growth is attributed to a significant increase in net interest income and provisioning reversals.
| SCBPL Financial Performance CY22 vs CY23 | |||
| Particulars | CY2022 | CY2023 | Change
% |
| Profit before tax (PBT) | 50,123,499,000 | 89,221,206,000 | 78.0% |
| Profit after tax (PAT) | 19,844,375,000 | 42,621,831,000 | 114.8% |
| Net mark-up income | 44,601,902,000 | 94,159,101,000 | 111.1% |
| Non-markup income | 18,047,541,000 | 13,324,963,000 | -26.2% |
| Earnings per share (EPS) | 5.13 | 11.01 | 114.6% |
Going by the income statement, the bank’s net markup income increased 111% to Rs94.1 billion, reflecting proactive balance sheet management, higher interest rates and pricing discipline.
However, non-markup interest income for CY23 stood at Rs13.3 billion, representing a 26% year-on-year decrease. This is primarily due to a massive decline in foreign exchange income and greater loss on securities during the review period.
During the period, the bank saw total income jump to Rs107.4 billion, up 72%.
The non-markup expenses, which include worker’s welfare fund, operating costs and other charges, surged during the year under consideration.
On the taxation front, SCBPL paid taxes to the tune of Rs46.6 billion as compared to Rs30.2 billion the preceding year, showing an increase of 54%.
The bank is continuously investing in its digital capabilities and infrastructure to enhance clients’ banking experience through the introduction and implementation of innovative solutions. The management is also fully committed to achieving sustained growth through consistently focusing on clients’ needs.
Balance sheet analysis
The bank’s total asset base reached Rs1 trillion and deposits crossed Rs719 billion mark as of December 31, 2023.
| SCBPL-Business Overview
(Rs in million) |
||
| Particulars | 31 December 2022 | 31 December 2023 |
| Total assets | 927,289 | 1,001,948 |
| Advances-gross | 236,923 | 240,843 |
| Advances-net | 216,208 | 220,183 |
| Investments-net | 477,732 | 226,712 |
| Deposits | 718,450 | 719,535 |
| Shareholder’s equity | 87,521 | 96,223 |
The analysis of the asset mix highlights that net investment decreased by 52.5% during the year. The net advances registered a growth of 1.8% and stood at Rs220 billion as of December 31, 2023.
During 2023, the bank contributed around Rs63.5 billion to the national exchequer in the form of direct income tax and as a withholding agent of federal/provincial tax authorities.
Performance over last five years (2019-2023)
Historical analysis shows that SCBPL’s performance witnessed fluctuations from 2019 to 2021, but posted substantial growth in markup earned, total income, profit-after-tax, and EPS in 2022 and 2023. This improvement in the last two years could be attributed to various factors, including effective management strategies, changes in market conditions and shifts in the banking industry landscape.
The bank earned the highest mark-up in 2023, indicating it had a strong performance in terms of interest income, which is a significant revenue source. However, the bank witnessed two dips regarding earned markup in 2020 and 2021.
SCBPL earned a total income of Rs39.1 billion in 2019, Rs40.9 billion in 2020, Rs37.3 billion in 2021, Rs62.6 billion in 2022, and Rs107.4 billion in 2023.
The bank hit the highest four-year PAT in 2023, amounting to Rs42.6 billion. It earned a net profit of Rs16.1 billion in 2019, Rs13.1 billion in 2020, Rs13.7 billion in 2021 and Rs19.8 billion in 2022.
| SCBPL-Historical Financials (Rs in million) |
|||||
| Particulars | 2019 | 2020 | 2021 | 2022 | 2023 |
| Mark-up Earned | 52,240 | 52,222 | 46,852 | 90,430 | 151,851 |
| Total Income | 39,076 | 40,939 | 37,393 | 62,649 | 107,484 |
| Profit after Tax | 16,017 | 13,133 | 13,728 | 19,844 | 42,622 |
| EPS | 4.14 | 3.39 | 3.55 | 5.13 | 11.01 |
The bank posted the highest five-year EPS of Rs11.01 in CY23. However, SCBPL experienced a decline in EPS in 2020.
Future outlook
Despite the challenging domestic and external environment, the bank is committed to playing its vital role in creating sustainable value for stakeholders and supporting a robust economic momentum in the country.