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Standard Chartered beats estimates despite volatility in Asia


Standard Chartered reported a 6 per cent enhance in pre-tax earnings within the first quarter of 2022 as development in buying and selling revenue and transaction banking helped offset a unstable setting in its fundamental Asian markets.

The UK-based lender stated on Thursday that statutory earnings earlier than tax had been $1.5bn for the primary three months of the yr, which exceeded analyst expectations of simply over $1bn, and despatched its shares up greater than 10 per cent in Hong Kong.

Standard Chartered’s outcomes outperformed these of its bigger rival HSBC, which this week revealed its earnings fell greater than 1 / 4 within the first three months of the yr on account of the battle in Ukraine and slowing development in its core Asia markets.

Bill Winters, Standard Chartered chief govt, stated the financial institution’s efficiency was “strong despite the volatile macro environment”. He added: “We are on track to deliver 10 per cent return on tangible equity by 2024, if not earlier.”

The rising markets-focused financial institution reported underlying working revenue of $4.3bn, which beat analyst estimates of $3.8bn. Financial markets revenue rose 32 per cent, boosted by its commodity enterprise, which benefited from rising power costs.

However, wealth administration revenue dropped 18 per cent, partly due to the influence of Covid-19 restrictions in its largest market Hong Kong, in addition to in mainland China, the place strict pandemic insurance policies led to department closures.

Asia earnings dropped 26 per cent owing to bigger credit score impairments of $227mn on account of the financial institution’s publicity to a slowdown in China’s property market and a sovereign ranking downgrade of Sri Lanka.

Standard Chartered is exiting seven international locations throughout Africa and the Middle East to give attention to faster-growing markets. The lender can also be betting on China, the place it can make investments $300mn to increase, significantly in wealth administration.

Standard Chartered stated it “remained alert to the challenging external environment” together with pandemic restrictions in crucial markets together with Hong Kong and China, and the influence of the Russian battle in Ukraine.



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