Standard Chartered operating profit rises 10pc to $2.84b
Wednesday, 5 August 2009
Standard Chartered PLC announced Tuesday another record performance for the first half of 2009 with income rising 14 per cent to US$7.96 billion and operating profit before tax of 10 per cent to $2.84 billion.
The Group has seen substantial income momentum across markets with four key geographies reporting over $500 million of income each in the first half.
The performance was driven by strong momentum in Wholesale Banking with income rising 37 per cent, benefiting from market dislocation and volatility leading to market share gains.
Restructuring initiatives in Consumer Banking began to show early positive results with income falling only three per cent over the second half of 2008 while operating profit increased 11 per cent over the same period.
The Board of Directors has also announced an interim dividend of 21.23 cents per share, up 10 per cent, said a press release.
Standard Chartered Group Chief Executive Peter Sands said, "These results show record income and profit performance, characterised by significant momentum over both the first and second halves of last year. Our balance sheet strength is now a source of competitive differentiation helping us win more businesses. We are in the right markets at the right time."
The foundations of the Group remain in good shape with capital ratios running higher than target ranges with tier 1 ratio at 10.5 per cent and total capital at 15.8 per cent.
The Group showed demonstrable cost control in the face of continued economic uncertainty with costs up only three per cent and cost income ratio down to 49.6 per cent compared to 56.4 per cent in the first half of 2008.
Wholesale Banking income increased to $5.03 billion for the first half while operating profit increased 36 per cent to $2.25 billion, benefiting from the strategy of deepening client relationships which saw revenue from the top 50 clients rising 40 per cent.
Within the business, Financial Markets increased income by 68 per cent, Corporate Finance by 68 per cent and Lending and Portfolio Management by 67 per cent.
Three of the four client segments each generated income of over $1 billion in the first half.
Compared to the first half of 2008, Consumer Banking income declined 15 per cent to $2.69 billion while operating profit fell 57 per cent to $348 million.
With the Group firmly focused on balance sheet strength, Consumer Banking has successfully attracted deposits with total deposit balances growing 12 per cent creating some $40 billion of surplus liquidity for the Group.
The Group has seen substantial income momentum across markets with four key geographies reporting over $500 million of income each in the first half.
The performance was driven by strong momentum in Wholesale Banking with income rising 37 per cent, benefiting from market dislocation and volatility leading to market share gains.
Restructuring initiatives in Consumer Banking began to show early positive results with income falling only three per cent over the second half of 2008 while operating profit increased 11 per cent over the same period.
The Board of Directors has also announced an interim dividend of 21.23 cents per share, up 10 per cent, said a press release.
Standard Chartered Group Chief Executive Peter Sands said, "These results show record income and profit performance, characterised by significant momentum over both the first and second halves of last year. Our balance sheet strength is now a source of competitive differentiation helping us win more businesses. We are in the right markets at the right time."
The foundations of the Group remain in good shape with capital ratios running higher than target ranges with tier 1 ratio at 10.5 per cent and total capital at 15.8 per cent.
The Group showed demonstrable cost control in the face of continued economic uncertainty with costs up only three per cent and cost income ratio down to 49.6 per cent compared to 56.4 per cent in the first half of 2008.
Wholesale Banking income increased to $5.03 billion for the first half while operating profit increased 36 per cent to $2.25 billion, benefiting from the strategy of deepening client relationships which saw revenue from the top 50 clients rising 40 per cent.
Within the business, Financial Markets increased income by 68 per cent, Corporate Finance by 68 per cent and Lending and Portfolio Management by 67 per cent.
Three of the four client segments each generated income of over $1 billion in the first half.
Compared to the first half of 2008, Consumer Banking income declined 15 per cent to $2.69 billion while operating profit fell 57 per cent to $348 million.
With the Group firmly focused on balance sheet strength, Consumer Banking has successfully attracted deposits with total deposit balances growing 12 per cent creating some $40 billion of surplus liquidity for the Group.