Standard Chartered absorbed a big jump in first-half bad debt charges to post unexpected profit growth yesterday - and reaffirmed plans for a secondary listing on the Hong Kong stock market before the end of the year.
The emerging markets bank reported net profit of US$416 million, up 2.97 per cent on the first half last year.
Investors were buoyed by the outcome - which comfortably beat grim forecasts of profit declines of up to 20 per cent - as well as an upbeat message from management about expansion plans in China.
In early London trade, Standard Chartered shares surged 55 pence, or almost 10 per cent, to 664 pence. The counter held on to those gains while rival Royal Bank of Scotland (which reported a 12 per cent rise in pre-tax profit to GBP2.33 billion), gave up an initial advance and was down 3.2 per cent, while the FTSE-100 index was down 0.2 per cent.
An enlarged share base meant Standard Chartered's earnings per share were down 10 per cent to 36.1 cents from 40.2 cents previously, but the bank raised its dividend by 10 per cent to 14.1 cents.
Revenues were up 6 per cent to US$2.28 billion, while pre-provisioning operating profit rose 16 per cent to US$1.04 billion.
