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

The ratings reflect SCBPL's association with a financially sound and reputed international bank - Standard Chartered PLC. This is supplemented by SCBPL's strategic and operational integration into the parent as the bank continues to benefit from the technical resources and cumulative expertise developed at the group level. The ratings incorporate the bank's dominant position in its target niche market (MNCs, established domestic Corporates & affluent retail clients) through a comprehensive product suite and significant digital capabilities complemented by its international franchise and its extensive presence in tier-I cities. The bank has depicted stronger profitability in 2018. The bank is increasing its focus on deployment of advances to boost profitability, as reflected by its enhanced ADR in 2018, which is still lower than the industry average. The ratings factor in sound management quality, healthy spreads, efficient operating structure and ample liquidity of the bank. SCBPL's pre-dominantly low-cost deposit base has enabled the bank to achieve one of the best CASA mix in the industry, while distinguishing it in its peer universe it also facilitates core operating activities. The bank is focused towards enhancing yield, cost efficiency, increasing client revenue and growing retail asset base. The risk absorption capacity of the bank, measured in terms of CAR, is robust (19.1%).
The ratings remain dependent on the bank's ability to maintain its presence in profitable segments, while remaining abreast of changing domestic operating environment. Meanwhile, maintaining spreads whilst not compromising on the asset quality is important for the bank.

About the Entity
SCBPL, incorporated in Pakistan in Jul 2006, is ultimately owned (99%) by Standard Chartered PLC and operates with a network of 72 branches across 11 cities at end-Mar19. In the recent years, Bank has extensively focused on digitizing its services while rationalizing its branch network for operating efficiencies. The Bank intends to continue becoming more digital to further improve efficiencies. Standard Chartered PLC is rated (S&P: A, Moody's: A1 and Fitch: A+) at end-Dec18.
SCBPL's seven-member BoD comprises qualified and experienced professionals. The board has four members of the Standard Chartered (SC) Group, including SCBPL's CEO. The remaining members of the board are independent directors. Mr. Shazad Dada, the CEO of the bank, is a seasoned Banker, he is assisted by an experienced team.