KARACHI: Standard Chartered Bank’s pre-tax profit for the first six months of 2014 increased 1% to Rs7.3 billion, according to the bank’s financial results released on Thursday.
With a 9% increase in both revenue and net advances, earnings per share went up to Rs1.22 from Rs1.21 in the corresponding period of 2013.
The bank’s board of directors has also declared an interim cash dividend of 7.5%, or Re0.75 per share, for the half year ending June 30. The overall administrative expenses increased by 6% during January-June. The in-country administrative cost has increased 2%, which is substantially lower than the current rate of inflation in the economy.
Net advances increased by Rs12 billion during the period under review mainly because of a pickup in lending. The deposit momentum continued with a growth rate of over 5% since the start of 2014. The continuous increase in low-cost deposits has supported the bank’s performance, with current and savings accounts now comprising over 92% of the deposits base.
Commenting on the results, acting Chief Executive Officer Najam Siddiqi said the bank’s balance sheet remains a source of competitive advantage with a focus on diversity, high levels of liquidity and a strong capital position.