Standard Chartered posts Rs7.5 billion profit
Earnings up 1.3%, net interest income goes up 10%
Earnings up 1.3%, net interest income goes up 10%. PHOTO: REUTERS
KARACHI:
Standard Chartered Pakistan posted a net profit of Rs7.5 billion in the first nine months of 2015, 1.3% higher than the earnings recorded in the same period of the last year.
According to its unconsolidated profit-and-loss statement released on the Karachi Stock Exchange (KSE) website on Wednesday, the bottom line of Standard Chartered shrank 6.2% to Rs2.5 billion for the July-September quarter.
The decrease in quarterly earnings is partly because of the provisioning expense in the last three months as opposed to a substantial reversal of provisions against non-performing loans in the same period of 2014.
Net interest income of Standard Chartered for Jan-Sep went up almost 10% over the last year to reach Rs16.7 billion. The year-on-year increase in total non-markup income over the nine-month period was 5.4%, the bank’s financial accounts show.
Meanwhile, the bank restricted its administrative expense in Jan-Sep to Rs8.8 billion, down 8.7% from the last year’s corresponding figure.
According to a statement by the spokesman for Standard Chartered, the bank’s deposits grew by more than 9% since the start of 2015. “The continuous increase in low cost deposits has significantly supported the bank’s performance with current and savings account now comprising over 90% of the deposits base,” it said. Standard Chartered has one of the lowest costs of deposits in the industry as per industry-wide data up to June 30.
The official press release did not mention the rise in the bank’s advances over the same period. The bank has not yet released its balance sheet for the latest quarter. However, a year-on-year comparison for the half yearly financial accounts of Standard Chartered shows its advances grew at a slower pace than the expansion in its deposit base.
The statement said the bank’s focus will be on prudently building quality customer assets (advances) as the economy improves further.
In an interview with The Express Tribune last month, Standard Chartered CEO Shazad Dada said there has been a “sea change” in the economy during the last two years. “What we are seeing based on our conversations with our clients as an international bank, I think the situation is very promising,” Dada said.
Admitting that the advances of Standard Chartered were not growing “as fast as we would like,” he noted that banks should not be blamed for slow growth in private-sector credit. “It’s not because we are not willing. There haven’t been that many projects. (But) today we are in a much better place … I am a big believer that this (advances growth) will happen,” he said.
Published in The Express Tribune, October 29th, 2015.
Standard Chartered Pakistan posted a net profit of Rs7.5 billion in the first nine months of 2015, 1.3% higher than the earnings recorded in the same period of the last year.
According to its unconsolidated profit-and-loss statement released on the Karachi Stock Exchange (KSE) website on Wednesday, the bottom line of Standard Chartered shrank 6.2% to Rs2.5 billion for the July-September quarter.
The decrease in quarterly earnings is partly because of the provisioning expense in the last three months as opposed to a substantial reversal of provisions against non-performing loans in the same period of 2014.
Net interest income of Standard Chartered for Jan-Sep went up almost 10% over the last year to reach Rs16.7 billion. The year-on-year increase in total non-markup income over the nine-month period was 5.4%, the bank’s financial accounts show.
Meanwhile, the bank restricted its administrative expense in Jan-Sep to Rs8.8 billion, down 8.7% from the last year’s corresponding figure.
According to a statement by the spokesman for Standard Chartered, the bank’s deposits grew by more than 9% since the start of 2015. “The continuous increase in low cost deposits has significantly supported the bank’s performance with current and savings account now comprising over 90% of the deposits base,” it said. Standard Chartered has one of the lowest costs of deposits in the industry as per industry-wide data up to June 30.
The official press release did not mention the rise in the bank’s advances over the same period. The bank has not yet released its balance sheet for the latest quarter. However, a year-on-year comparison for the half yearly financial accounts of Standard Chartered shows its advances grew at a slower pace than the expansion in its deposit base.
The statement said the bank’s focus will be on prudently building quality customer assets (advances) as the economy improves further.
In an interview with The Express Tribune last month, Standard Chartered CEO Shazad Dada said there has been a “sea change” in the economy during the last two years. “What we are seeing based on our conversations with our clients as an international bank, I think the situation is very promising,” Dada said.
Admitting that the advances of Standard Chartered were not growing “as fast as we would like,” he noted that banks should not be blamed for slow growth in private-sector credit. “It’s not because we are not willing. There haven’t been that many projects. (But) today we are in a much better place … I am a big believer that this (advances growth) will happen,” he said.
Published in The Express Tribune, October 29th, 2015.