Standard Chartered Reports 23% Earnings Decline in H1 2025

Standard Chartered (Pakistan) has reported a 23% drop in profit after tax for the first half of calendar year 2025, as lower domestic interest rates weighed heavily on margins. Earnings fell to Rs16.6 billion compared with Rs21.5 billion in the same period last year, with earnings per share sliding to Rs4.3 from Rs5.6.

Net interest income declined 33% year-on-year to Rs32.5 billion, driven by a steep 41% fall in mark-up revenue. Although non-funded income grew 21% to Rs11.9 billion from stronger fee income, securities gains, and derivatives, it could not fully offset the pressure. As a result, total income contracted 24% to Rs44.4 billion.

Profit before tax dropped 33% to Rs32.9 billion. Despite weaker earnings, Standard Chartered Pakistan maintained its shareholder payout with an interim dividend of Rs3.5 per share, in line with its consistent cash distribution track record.

On the cost side, operating expenses rose 17% year-on-year but remained tightly managed compared to industry peers. The cost-to-income ratio came in at 27.2%, still among the strongest in the sector. Return on equity, however, eased to 28.8% from 43.8% a year earlier.

Management indicated that most of the earnings impact from monetary easing was concentrated in the second quarter. With no further significant policy rate cuts anticipated, Standard Chartered expects margins to stabilize in the upcoming quarters.