StanChart profits from Asia stance
(6 March 2009 – Global) UK Bank Standard Chartered have bucked the trend and posted a positive annual net profit up 20 percent on strong growth in Asian markets.
Net profit for Standard Chartered was up an impressive 20 percent to US$3.41 billion (A$5.3 billion) from US$2.84 billion a year before.
For the year ended 31 December 2008, operating income increased 26 percent to US$13.97 billion. Despite the strong results, Standard Chartered doubled the number of write-offs to US$1.79 billion.
Standard Chartered also managed to increase their assets holding, with total assets up 32 percent to $435 billion, from $330 billion in 2007.
In the Consumer Banking unit, Standard Chartered recorded operating income up 2.5 percent to US$5.95 billion, made up primarily of profit from the Wealth Management and Deposits unit (US$2.79 billion) and Cards, Personal Loans and Unsecured Lending (US$2.1 billion).
Operating profit in the Consumer arm, at US$1.12 billion, was primarily made up of profit from Hong Kong and Singapore.
In the Wholesale Banking unit, operating income was up strongly on the back of increases in the Global Markets unit, which jumped 60 percent. The Financial Markets sub-unit, which includes FX and Interest Rates, made up a significant portion of this gain.
The groups lending business contributed US$551 million in operating income, while the Transaction Banking business managed a 31 percent increase in income to US$2.66 billion for the year.
The profit earners for the wholesale division were India, the Middle East, Hong Kong and Singapore, with a operating profit totalling US$3 billion for the year, while the bank made a loss in Europe and America.
Peter Sands, group chief executive, said that the Wholesale Banking unit’s strong results can be attributed to the strategy of deepening client relationships.
He said that income from the top 50 clients grew 45 percent and the number of clients with annual income over $10 million increased by 88 per cent. Building bigger, deeper relationships with clients will continue to be the key driver of growth in 2009.
For the year ended 31 December 2008, operating income increased 26 percent to US$13.97 billion. Despite the strong results, Standard Chartered doubled the number of write-offs to US$1.79 billion.
Standard Chartered also managed to increase their assets holding, with total assets up 32 percent to $435 billion, from $330 billion in 2007.
In the Consumer Banking unit, Standard Chartered recorded operating income up 2.5 percent to US$5.95 billion, made up primarily of profit from the Wealth Management and Deposits unit (US$2.79 billion) and Cards, Personal Loans and Unsecured Lending (US$2.1 billion).
Operating profit in the Consumer arm, at US$1.12 billion, was primarily made up of profit from Hong Kong and Singapore.
In the Wholesale Banking unit, operating income was up strongly on the back of increases in the Global Markets unit, which jumped 60 percent. The Financial Markets sub-unit, which includes FX and Interest Rates, made up a significant portion of this gain.
The groups lending business contributed US$551 million in operating income, while the Transaction Banking business managed a 31 percent increase in income to US$2.66 billion for the year.
The profit earners for the wholesale division were India, the Middle East, Hong Kong and Singapore, with a operating profit totalling US$3 billion for the year, while the bank made a loss in Europe and America.
Peter Sands, group chief executive, said that the Wholesale Banking unit’s strong results can be attributed to the strategy of deepening client relationships.
He said that income from the top 50 clients grew 45 percent and the number of clients with annual income over $10 million increased by 88 per cent. Building bigger, deeper relationships with clients will continue to be the key driver of growth in 2009.
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