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Standard Chartered beats consensus as profit more than triple on trade, markets operations and wealth management push
- Pre-tax profit was US$996 million, beating a consensus estimate of US$942 million, with Asia generating 86 per cent of income
- Bank’s results driven by gains in its financial markets and trade businesses while its push into wealth management gathered pace
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Standard Chartered, one of Hong Kong’s three currency-issuing banks, said its profit more than tripled in the third quarter as it benefited from double-digit gains in its financial markets and trade businesses and lower provisions for potential soured loans.
The London-based lender, which generates much of its revenue in Asia, said its credit impairments declined by 70 per cent to US$108 million, reflecting a similar trend reported by its banking rivals during the quarter. Standard Chartered took provisions of US$2.3 billion for all of 2020 as the coronavirus pandemic weighed on economic activity.
“We delivered a return to top-line growth in the third quarter and achieved further progress against our strategic priorities, with strong performance in our financial markets and trade businesses and ongoing positive momentum in wealth management,” chief executive officer Bill Winters said in a statement.
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The emerging-markets-focused bank’s pre-tax profit was US$996 million, beating a consensus estimate of US$942 million, and an improvement over the US$435 million it reported a year earlier. On a net basis, earnings rose to US$644 million versus US$161 million a year ago.
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Shares of Standard Chartered declined 2.3 per cent to close at HK$51.55 on Tuesday, following the announcement.
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