Standard Chartered first half profit up 17% to US$ 3.64bn
Diverse income and product streams drive double-digit income growth
Highlights:
- Group income climbs 11%, with strong momentum across products and markets.
- Expenses tightly managed; with income growing faster than costs.
- Capital position strengthened further with Core Tier 1 ratio of 11.9%.
- Highly liquid balance sheet; deposits grow 19% to US$343bn; strong A/D ratio of 78.1%.
- Consumer Banking delivers 58% profit growth, as repositioning progresses.
- Wholesale Banking profit up 5% to record $2.59bn.
- Continued performance for shareholders, with RoE of 13%, dividend up 10%.
London, 3rd August, 2011. Standard Chartered PLC today announced a ninth successive record first half of profit with income growing by 11 per cent* to US$8.76 billion as profit climbed 17 per cent to US$3.64 billion. The Group produced diverse and resilient income growth across a number of products and geographies, driven by recent investment in new product capabilities and income streams. Income growth is underpinned by a highly liquid, well funded and growing balance sheet, while we maintain strong cost control. With rapidly developing trade and investment flows across our footprint, allied to a fast-growing middle class, Standard Chartered sees strong opportunities for further organic growth across Asia, Africa and the Middle East.
The Group continues to focus on the strength of the balance sheet in orer to support organic growth and support our customers, whilst ensuring we are well insulated from macro-economic and regulatory uncertainty. We have grown customer deposits and lending, as we take market share across as wide range of products despite increasing competition in a number of our markets. Customer deposits grew by 19 per cent or US$55 billion to US$343 billion, with the advances to deposits ratio remaining strong at 78.1 per cent. The Group continues to be highly liquid, with US$150 billion of cash or near cash assets, while we have no sovereign debt exposure to Portugal, Ireland, Italy, Greece or Spain.
Geographic performance has been broad and well spread. With the exception of India, all regions have shown good increases in income, with Hong Kong up 29 per cent, and Singapore 20 per cent higher. Operating profit and income in India fell by 39 per cent and 12 per cent respectively, driven by rising interest rates and increasing competition resulting in falling net interest margins. Project and deal flow has slowed as business sentiment is impacted on the back of governance concerns in the market. We reiterate our view that India will be the third largest economy in the world by 2030, and given our strength and competitive position, we are well-positioned for the upturn.
Peter Sands, Group Chief Executive, Standard Chartered said: “This is a very strong set of results - we have delivered record income and profit, grown our balance sheet, and raised our capital levels and dividend. Our growth is resilient and diverse. With a unique position at the heart of growing trade and investment flows between Asia, Africa and the Middle East, with their fast-expanding middle classes, we continue to see significant opportunities for profitable growth across our network.”
Financial Performance Highlights
| Group (in US$ m) | 1H 2011 | 1H 2010 | % CHANGE |
|---|---|---|---|
| Income | 8,764 | 7,924 | 11 |
| Expenses | 4,677 | 4,344 | (8) |
| Loan Impairment | 412 | 437 | 6 |
| Profit Before Tax | 3,636 | 3,116 | 17 |
| WHOLESALE BANKING | |||
| Income | 5,427 | 5,012 | 8 |
| Profit Before Tax | 2,590 | 2,471 | 5 |
| CONSUMER BANKING | |||
| Income | 3,337 | 2,912 | 15 |
| Profit Before Tax | 1,013 | 643 | 58 |
Note to Editors:
* All figures in the release are comparisons between 30/6/2011 and 30/6/2010, unless otherwise stated.
Standard Chartered – leading the way in Asia, Africa and the Middle East
Standard Chartered PLC is a leading international bank, listed on the London, Hong Kong and Mumbai stock exchanges. It has operated for over 150 years in some of the world's most dynamic markets and earns more than 90 per cent of its income and profits in Asia, Africa and the Middle East. This geographic focus and commitment to developing deep relationships with clients and customers has driven the Bank’s growth in recent years. With 1,700 offices in 70 markets, Standard Chartered offers exciting and challenging international career opportunities for around 85,000 staff. It is committed to building a sustainable business over the long term and is trusted worldwide for upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. The Bank’s heritage and values are expressed in its brand promise, ‘Here for good’. For more information on Standard Chartered, please visit www.standardchartered.com.