A drop in bad-debt charges and a stronger economic environment in Hong Kong combined to push up Standard Chartered's net profit by 20.6 per cent to US$1.01 billion last year.
Overall provisions for bad and doubtful debts fell 23.9 per cent to US$536 million from $705 million, as Standard Chartered benefited from tighter credit policies. However, the bank also attributed a 3 per cent fall in net interest income to its increased stringency.
'Last year, we deliberately suppressed our credit-card business because of the worsening bankruptcy situation,' Standard Chartered director Peter Wong Tung-shun said. 'On that objective, we were successful, as you can see from the bad-debt figures.'
Earnings per share rose 20 per cent to 89.6 US cents. The bank announced a dividend of 52 cents, up 10.6 per cent.
Standard Chartered's business in Hong Kong, its most important market, posted profit growth of 19.8 per cent to HK$2.44 billion.
Bad and doubtful debt charges in Hong Kong dropped 40 per cent from HK$2.29 billion to $1.76 billion.
