StanChart set to post record profits again

City A.M. Reporter
STANDARD Chartered has forecast income growth of at least 10 per cent this year, it said yesterday, helped by a strong showing in Asian markets, putting it on track for a ninth straight year of record earnings.

The bank did however see growth slow in the third quarter, led by a further slowdown in India where conditions are likely to stay difficult for the medium-term.

StanChart said its income growth slowed to a “high single digit” per cent in the first nine months of the year, marking a slowdown from over 10 per cent in the first half, but expects full year growth to return to a “double digit” level.

Income growth exceeded its cost expansion, with expenses in the third quarter largely similar to the level recorded in the first half.

The London-headquartered bank, which makes more than 80 per cent of its earnings in Asia and other emerging markets, did not give specific figures as it is only required to report those on a bi-annual basis.

Still, its shares dropped 1.22 per cent to close at 1,421p, due to a slowdown in India. Income in India, which overtook Hong Kong as Standard Chartered’s biggest profit contributor last year, fell by about 14 per cent in the first nine months, compared with a 12 per cent decline in the first half of the year. Indian earnings fell almost 40 per cent in the first half.