Standard Chartered’s first half profit declines 6 per cent, beats analysts expectations

Standard Chartered said on Thursday that its profit declined 6 per cent in the first half of the year, but beat analysts expectations despite “geopolitical pressures”, such as the US-China trade war, weighing on activity in some parts of its business.

The bank, one of three lenders authorised to issue Hong Kong’s currency notes, reported a profit of US$1.49 billion in the first half, compared with US$1.59 billion in the same period a year ago.

The emerging markets lender, which is based in London, but generates much of its revenue in Asia, reported a pre-tax profit of US$2.41 billion in the first half. That was ahead of a consensus estimate of 11 analysts compiled by the bank.

Standard Chartered chief executive Bill Winters said the bank has made “good progress” in its turnaround efforts, but the company is keeping a close eye on the trade war, the ongoing protests in Hong Kong and other geopolitical events that could affect investor sentiment.

“[The trade war] has clearly had a downward impact on global economic sentiment and, to some degree, on global economic activity,” Winters said on a conference call with journalists. “There are clearly several things that are contributing to the slowdown in economic growth, including the fact that we are relatively late cycle in this recovery and this very long expansion we’ve had. Clearly there’s a sentiment issue as well.”