StanChart posts strong earnings for first quarter
Standard Chartered, the British lender with a focus on Asia and emerging markets, said profit and income rose in the first quarter as a result of strong growth in its consumer and corporate banking businesses.
The bank, listed in London and Hong Kong, said it achieved double-digit growth in its consumer banking income in the first quarter compared with the same period a year earlier.
The expansion was driven by the more secured loans, an increase in mortgage business and a rise in saving accounts, the bank said in a statement posted on the stock exchange website yesterday.
The lender did not provide figures for earnings as under British reporting requirements firms only need to give management updates rather than a full set of financial results in the first and third quarters.
Standard Chartered's wealth management business improved in Hong Kong, India and Singapore and the lender is hiring 500 employees in Hong Kong to increase revenue from private banking.
With a growing economy and better risk management measures, Standard Chartered said its bad-debt levels fell as overall loan quality improved. Its corporate banking unit had no material new impairments charged in the first quarter of this year.
The lender said its client income from wholesale banking in the first quarter increased more than 20 per cent from a year earlier, reflecting its continued focus on deepening relationships with clients.
'We continue to grow both customer assets and liabilities, with a focus on secured assets and current and savings accounts,' the bank said. 'Good volume growth in mortgages has been more than offset by pressure on margins as competition increases.'
It said overall, the group has had a very strong start to the year, despite margin headwinds and increasing competition, with a record quarter in terms of both profit and income.
The strong profit statement helped its Hong Kong-traded stock to close 0.57 per cent higher at HK$213.40 yesterday. The Hang Seng Index dropped 48.31 points to close at 20,763 points.
Louis Tse Ming-kwong, director of VC Brokerage, said Standard Chartered had a positive outlook because of its focus on Asia and emerging markets, which were experiencing stronger economic growth than developed markets.
'The US and European markets are still suffering from the financial crisis but Standard Chartered has little exposure to these areas. This is why it is better off than other international lenders which have investments in the US and European countries,' Tse said.
Growth plan
Standard Chartered says its wealth management business has improved
The number of employees the bank is hiring in Hong Kong to increase revenue from private banking: 500
