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| StanChart H1 profit before tax jumps 10% to $2.83 bn |
| Press Trust of India / London Aug 04, 2009, 19:45 IST |
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Banking major Standard Chartered today reported a 10 per cent rise in profit before tax to $2.83 billion for the first six months of 2009.
StanChart, which has a strong presence in the emerging markets, had raked in a profit before tax of $2.58 billion in the year-ago period, it said in a statement.
The entity's operating income rose by 14 per cent to $7.96 billion for the six months ended June 30, 2009.
"We have achieved record results through our disciplined management approach and the diversity of our business and markets in Asia, Africa and the Middle East," StanChart's Chairman John Peace said.
The charge for loan impairment more than doubled to $1.09 billion.
In India, StanChart's operating profit from consumer banking segment plunged by 51 per cent to $24 million in the first half of this year.
The loan impairment charges related to consumer banking business in India ballooned to $77 billion. In the comparable period, the same stood at $43 million.
"Consumer Banking loan impairment increased mainly in Korea, India and the UAE, predominantly in the unsecured portfolios," the statement said.
In India, banking entity's total loans and advances decreased to $8.21 billion in the six months ended June 30, from $8.73 billion in the year-ago period.
According to the firm, the challenging credit environment continued into the first half of 2009, with significant provisions booked in wholesale banking, particularly in Korea and the Middle East and Other South Asia (MESA).
The income from wholesale banking division grew 19 per cent to $691 million in India.
"Client revenues drove income growth, as deepening of client relationships led to increased large Corporate Finance deals booked in the period," the statement said.
The company's overall consumer banking income declined 15 per cent as a result of margin compression and muted Wealth Management product sales.
However, wholesale banking income grew 37 per cent, underpinned by disciplined execution of its strategy, market share gains and increased margins.
The bank would be raising $1.6 billion which would help in further strengthening its capital position.
On the outlook, StanChart's Chief Executive Peter Sands said the bank is in great shape. "...We have finished the first half with good momentum and we have begun the second half strongly. We are in the right parts of the world and we have got the right strategy."
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