KARACHI: Standard Chartered Bank (Pakistan) Limited (SCBPL) posted a profit after tax of Rs5.60 billion for the first quarter ended March 31, 2026, demonstrating resilience despite a challenging interest rate environment that weighed on the bank’s overall revenue.
According to the bank’s first quarterly report, profit before tax stood at Rs11.73 billion, compared with Rs17.03 billion in the corresponding period last year. Earnings per share (EPS) declined to Rs1.45, down from Rs2.06 recorded in the first quarter of 2025.
The bank reported total revenue of Rs16.61 billion, a decrease from Rs23.10 billion a year earlier. Management attributed the decline primarily to lower interest rates, which compressed net interest margins. However, reduced funding costs, disciplined expense management, and strong recoveries from previously written-off loans helped cushion the impact on profitability.
Operating expenses remained under control, falling slightly on a year-on-year basis to Rs5.35 billion, while the bank recorded a net credit loss reversal of Rs732 million, reflecting prudent risk management and improved asset quality.
On the balance sheet, customer deposits stood at Rs643.90 billion at the end of March 2026, marginally lower than the year-end level. The bank said the decline was driven by deposit optimization initiatives, while the share of current account deposits continued to improve, supporting a lower-cost funding base.
Meanwhile, net advances increased to Rs258.66 billion, up more than 21% from the end of December 2025, reflecting stronger lending activity and improving economic momentum. Total investments stood at Rs354.90 billion, while shareholders’ equity amounted to Rs104.21 billion.
In its directors’ report, the bank highlighted signs of improving macroeconomic conditions in Pakistan, including easing inflation, policy support, and strengthening external accounts. Management believes these factors are creating a more stable operating environment, although geopolitical uncertainties and global commodity price movements continue to pose risks.
Looking ahead, Standard Chartered said it will continue investing in digital banking capabilities, technology, and customer-focused solutions while maintaining a prudent approach to risk management. The bank remains focused on expanding its affluent banking franchise, strengthening sustainability initiatives, and delivering long-term value through operational efficiency and innovation.
