StanChart set for another good year
Operating profit grew less than 10%, however.
U.K.-based Standard Chartered Plc, which derives most of its profit from Asia, said its operating profit grew by a mid-single digit rate in the first nine months of the year. Earnings would have risen by at least 10% without a US$340 million settlement paid to New York regulators who threatened to strip the bank of its state license over allegations it laundered US$250 billion for Iran.
CEO Peter Sands said that although the environment remains turbulent, the bank is in the right markets and continues to see good momentum across its businesses and geographies.
The bank's forecast is in line with full-year expectations for a 6% rise in pretax profit. StanChart said in August that first-half pretax profit and income both increased by around 9%.
It pointed out that Hong Kong, China, Indonesia and Europe delivered a strong performance but without giving details. It also managed to keep costs under control. Weakening the bank’s earnings, however, was weakness in India, Singapore's wholesale banking and South Korea's consumer banking.
Analysts, however, are expected to revise down the bank’s full-year earnings forecast by another 5-10%, given the external headwinds.