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5th August 2011

StanChart yet again reports record profits

Standard Chartered reported net attributable of $2,566m (€1,794m £1,566m ¥197.7bn Y16,510m) for the first half, UP 19%.


The bank reported profits up in every territory except for India. This is the ninth successive year reporting record first half profits. Lending was up 22% on a year ago. No surprise that the biggest profit increases were in Asia Pacific with Singapore profits up 34%, Hong Kong up 23%, China up 19% and South Korea 14%. Other regions also did well with Americas and Europe up 11% and Africa up 10%. Regarding India the bank mentioned interest rates, regulatory changes and an increasingly competitive market for its difficulty.


The bank's strength in regions where there remains a savings culture is important. The bank's Loan to Deposit ratio is 78%, leaving it free of liquidity worries and a net lender to the wholesale markets.


Income summary - first half 2011 2010 Change
$m $m %
Interest income 7,886 6,462 22
Interest expense -2,945 -2,307 28
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Net interest income 4,941 4,155 19

Fees and commission income 2,401 2,288 5
Fees and commission expense -222 -140 59
Net trading income 1,366 1,351 1
Other operating income 278 270 3
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Non-interest income 3,823 3,769 1

Operating income 8,764 7,924 11

Staff costs -3,224 -2,808 15
Premises costs -422 -381 11
General administrative expenses -731 -884 -17
Depreciation and amortisation -300 -271 11
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Operating expenses -4,677 -4,344 8

Operating profit before impairment losses 4,087 3,580 14
Credit impairment losses and provisions -412 -437 -6
Other impairment -72 -50 44
Profit from associates 33 23 43
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Profit before taxation 3,636 3,116 17
Taxation -1,032 -935 10
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Profit for the period 2,604 2,181 19
Non-controlling interests 38 33 15
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Attributable to shareholders 2,566 2,148 19