October 29, 2025 (MLN): Standard Chartered Bank (Pakistan) Limited (PSX: SCBPL), one of Pakistan's leading foreign banks, reported a profit after tax of Rs22.5bn for the nine months ended September 30, 2025, showing a decline of 30.74% compared to Rs32.6bn in the same period last year.

Earnings per share (EPS) fell 30.80% to Rs5.82, down from Rs8.41 in the corresponding period of 2024.

The bank's total income dropped significantly by 29.57% year-on-year to Rs63.3bn, compared to Rs89.9bn last year, primarily due to a sharp contraction in net mark-up/interest income and lower gains on securities.

Net mark-up/interest income, the bank's primary revenue source, declined 34.34% to Rs47.5bn from Rs72.4bn, as mark-up/return earned decreased 43.91% to Rs69.4bn while mark-up/interest expensed fell 57.42% to Rs21.8bn during the period.

Total non mark-up/interest income declined 9.82% to Rs15.8bn from Rs17.5bn in the prior-year period. Fee and commission income showed resilience, rising 20.12% to Rs6.08bn, while dividend income surged 40.85% to Rs140.8m.

However, income from derivatives plunged 45.07% to Rs695.3m, and gain on securities fell 43.85% to Rs2.25bn. Foreign exchange income edged down 7.12% to Rs6.51bn, though other income jumped 83.45% to Rs104.0m.

Operating expenses increased 15.13% to Rs16.9bn, while the workers welfare fund allocation decreased 36.16% to Rs940.8m. Other charges dropped sharply by 96.57% to Rs2.3m. Total non mark-up/interest expenses rose 10.01% to Rs17.8bn.

Profit before credit loss allowance stood at Rs45.5bn, down 38.27% from Rs73.7bn last year. Credit loss allowance and write-offs (net) improved substantially, declining 66.97% to Rs608.9m from Rs1.84bn in the corresponding period.

The bank's profit before taxation declined 38.97% to Rs46.1bn, compared to Rs75.5bn in 9M 2024. Taxation expense decreased 45.21% to Rs23.5bn from Rs43.0bn, leading to a profit after taxation of Rs22.5bn.

The results indicate that Standard Chartered Bank Pakistan faced headwinds from compressed interest margins and lower trading income, though improved asset quality through reduced provisioning and growth in fee-based income provided partial support.

The bank continues to maintain its position as a leading international banking institution in Pakistan, offering comprehensive banking and financial services to corporate, institutional, and retail clients across the country as part of the global Standard Chartered Group network.