Of Special Interest


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1st July 2011

StanChart double digit profit increase forecast

In the Standard Chartered trading update Peter Sands, Group Chief Executive, commented, "Standard Chartered is on course to deliver another strong first half. We anticipate delivering cost growth broadly in line with income growth for the first six months of 2011. The credit environment remains benign across Asia. We are advantaged by a very strong balance sheet which remains highly liquid, very well capitalised, diverse and conservative; and are capturing increasing levels of business from our markets across Asia, Africa and the Middle East."

The bank went on to say that as at the end of May income and profit were showing double digit growth over the comparable period in 2010.

It is interesting that Standard Chartered notes a fall in income in India compared with a year ago. There have been increasing signs of a slow down in India for all banks. It also notes that African growth 'is muted'. These particular slowdowns being more than countered by the Middle East and Asia-Pac.

Impairments are expected lower and NIM steady compared with the previous period. The bank reports no exposure to sovereign debt in Southern Europe. The bank is liquid and a net lender to the interbank market. The deposit base is still increasing all be it at a slower pace than previous.

The bank reports wealth management business particularly strong.