PACRA Maintains Entity Ratings of Standard Chartered Bank (Pakistan) Limited

The ratings assigned to Standard Chartered Bank (Pakistan) Limited ("SCBPL" or the "Bank") reflect the strong franchise value the Bank has built over the years, which serves as a cornerstone for its market positioning, customer base, and overall business strategy. This strength is directly attributable to the Bank’s close affiliation with Standard Chartered PLC, a globally diversified financial institution. Leveraging this strategic alignment and operational integration with its parent organization, SCBPL benefits from access to advanced technical resources and the extensive expertise developed by the Group.
Under capable leadership, the management team has successfully incorporated global best practices. The Bank’s policies are primarily derived from Standard Chartered PLC, ensuring a globally consistent and conservative approach to operations and risk management. SCBPL excels in its core competencies, supported by a robust technological infrastructure, exceptional service delivery, and a well-diversified customer base. It operates a compact yet highly efficient network of 40 branches nationwide, delivering high-touch, high-value services.
SCBPL is heavily technology-oriented, operating on a proprietary, in-house core banking platform developed by its parent institution. This independence from third-party vendors enhances system reliability, operational resilience, and reduces exposure to industry-wide supply-side risks. Its advanced digital infrastructure further supports its largely digital retail banking operations. With primary focus on its clients, SCBPL places strong emphasis on providing innovative solutions that work well for both the bank and its clients base. The bank has a prudent lending approach and closely monitors economic developments to manage risk return reward. With its strong presence among large corporates and MNCs, SCB is a vital player in the overall economic progress in the country. It is also exploring entry into agriculture financing, recognizing the sector’s critical importance to Pakistan’s agrarian economy.
For the CY24, the Bank reported a net markup income of PKR 93.5 billion (CY23: PKR 94.16 billion). Non-markup income rose by 85%, reaching PKR 24.66 billion (CY23: PKR 13.24 billion), primarily due to gains on securities, followed by foreign exchange income. SCBPL recorded a profit after tax of approximately PKR 46.1 billion in CY24, compared to PKR 42.6 billion in CY23. Consistent with the prudent approach of its parent, the Bank has maintained a prudent stance to mitigate country-specific risks. As a result, the advances portfolio declined by 20.95%, settling at PKR 190.3 billion. In contrast, the Bank's investment portfolio saw a significant increase to PKR 654.34 billion in CY24 (CY23: PKR 226.71 billion), with 99.8% comprising short-term government securities.
SCBPL’s market share in customer deposits stood at 2.73% as of CY24 (CY23: 2.64%). The deposit base remains predominantly composed of low-cost deposits, contributing to a highly favorable CASA (Current and Savings Account) ratio of 97% in CY24. The Bank’s Capital Adequacy Ratio (CAR) improved to 23.48% in CY24, up from 20.07% in CY23.
The ratings are contingent upon the Bank's ability to maintain its relative positioning amidst changing domestic conditions, while safeguarding spreads and asset quality.

About the Entity
SCBPL, established in Pakistan in July 2006, is predominantly owned (98.99%) by Standard Chartered PLC, operating through a network of 40 branches across 10 cities as of Dec'24, including 2 Islamic branches and 1 branch located in the Export Processing Zone. With a strong focus on digitalization in recent years, this emphasis is set to persist. Standard Chartered PLC holds credit ratings of ''A+'' (S&P), ''A3'' (Moody’s), and ''A'' (Fitch) as of CY24. SCBPL's seven-member Board includes four members from the Standard Chartered Group, including CEO Mr. Rehan Shaikh, alongside independent or non-executive directors. Mr. Shaikh, a seasoned banker, is assisted by an experienced team.