Standard Chartered is confident of delivering a strong earnings performance for the rest of the year after unveiling a 30.3 per cent jump in interim net profit.
In a rare piece of good news for the struggling banking industry, net profit at the London-based lender rose to US$1.785 billion from US$1.37 billion a year ago.
Earnings are being driven by robust growth in key emerging markets, which has more than offset a rise in loan impairment charges and a write-down on securities affected by the subprime turmoil. Shares of the bank rose 6.25 per cent to GBP15.12 (HK$230.92) at one point in London after the results were announced.
Chairman Mervyn Davies attributed the better than expected result to the bank's strategy of focusing on Asia, Africa and the Middle East.
Many global banks are posting losses or big declines in profits as the unfolding subprime turmoil exposes them to bad investments and loans. Rival HSBC Holdings has seen its earnings eroded by a sharp rise in provisions, mainly for its US consumer finance units.
Hong Kong remained the largest profit contributor for Standard Chartered, with a record-high half-year pre-tax profit of US$656 million, a gain of 28 per cent year on year. That accounted for 25.36 per cent of the group total.
Wholesale banking was the major driver of growth among other business lines, with operating profit increasing by 38 per cent to US$1.648 billion.