SCBPL Profit Falls 39% to Rs46.1B Amid Rate Cuts

KARACHI: Standard Chartered Bank (Pakistan) Limited (SCBPL) posted a profit before tax of Rs46.1 billion for the nine months ended September 30, 2025, a 39% plunge from Rs75.5 billion last year, amid brutal interest margin compression, per a PSX filing.

Revenue cratered to Rs63.3 billion from Rs89.9 billion, hammered by the central bank’s slashed policy rate. A Rs0.6 billion net release in credit loss allowances—fueled by prudent risk management and robust recoveries—cushioned the blow. Yet expenses surged 10%, driven by inflation and digital infrastructure investments.

In a bold pivot, deposits were deliberately slashed 21% to Rs662 billion via a deposit optimization drive, boosting current accounts to 59% of the book. Meanwhile, net advances roared 39%, adding Rs66 billion since January, signaling economic revival.

SCBPL boasts ironclad financial health: Capital Adequacy Ratio (CAR) at 19.75%—far above regulatory thresholds—and a Liquidity Coverage Ratio of 461.6%. The Directors’ Report voiced cautious optimism, betting on continued recovery despite currency volatility and global commodity swings.