Last year marked a transformation for Standard Chartered Bank in Pakistan, which last year achieved 38% growth in net profits. This followed from its strategic acquisition in 2006 of Union Bank, one of Pakistan’s best-rated private banks. The $487m transaction was the largest in Pakistan’s banking history and resulted in the establishment of SCBP, the first international bank to be locally incorporated. The acquisition cemented Standard Chartered’s position as the largest and fastest growing international bank in the country, ranking fifth in revenue and seventh in assets.
This new scale has provided the bank’s customers with visible benefits. It brought global banking expertise and product knowledge to new cities in Pakistan and it enabled the bank to penetrate new market segments. Standard Chartered’s consumer banking business is now the second largest merchant acquirer for credit cards, and the consumer asset book places it among the top three banks.
The bank has pursued a focused strategy of adding value to its customer base in capital markets, large ticket corporate finance and project finance, as well as Islamic banking by strengthening its on-ground team supported by the group’s global functions. As a result, it was lead arranger of six of the seven Islamic sukuks issued and mandated as lead arranger for a further five. Product innovation continues to be its forte, with the recent launch of Pakistan’s first capital guaranteed fund and its new Islamic banking brand. New segments like wealth management and SMEs are the bank’s key strategic segments.
“Standard Chartered Bank’s story in Pakistan is all about transformation,” says chief executive Badar Kazmi. “Only three years ago, we were a niche international bank with 20 branches in eight cities with a 1200-strong workforce. Today the bank has 141 branches in 25 cities serving more than 750,000 customers, with more than 8500 people working for us.
“Our acquisition of Union Bank, the largest in the history of Pakistan’s banking industry, is one of the critical milestones in our growth journey and is also significant in terms of its wider implications on Pakistan’s banking landscape. Our aspiration is to become a locally embedded bank with strong international credentials.”
