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While, unusually, India proved a weak point for London-listed bank Standard Chartered that “wasn't the case elsewhere” after the bank reported a 19.5 per cent rise in half year profits.
Profits after tax for the six months ending in June rose to $2.56 billion from $2.14 billion on an operating income of $8.7 billion. Operating profits at its consumer banking division crossed $1billion, while strong performances by Hong Kong and Singapore made up for the weakness in India.
Profits in Hong Kong rose by 55 per cent, while even in South Korea, where the company has been struggling with industrial action as it tries to introduce performance-related pay, was up 30 per cent.
The interim dividend was up 10 per cent year-on-year.
Healthy balance-sheet
The company had no sovereign exposure to Portugal, Italy, Ireland Greece and Spain. “Our balance-sheet is robust and well diversified,” said Mr Richard Meddings Group Finance Director, Standard Chartered.
The company expects to deliver double-digit income growth for the whole year, excluding the impact of a bank levy in the UK.
While the company warned of economic risks both in Europe and its growth markets, the largest threat came from regulatory action, he said.
“We continue to see significant opportunities for organic growth,” said Chief Executive, Mr Peter Sands.
“We have stuck to our strategy of focusing on Asia, Africa and the Middle East,” he added. “It delivered before the crisis, during the crisis and after the crisis, we see no reason to change.”
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