Standard Chartered gets boost where HSBC flagged disappointment

HONG KONG: Standard Chartered Plc beat expectations to record a 16% jump in pre-tax profit in the third quarter and said yesterday that revenue rose in Hong Kong despite months of protests in its major market.

The London-headquartered lender said it earned US$1.24 billion before tax in July-September, against forecasts for a drop, though chief executive Bill Winters warned of “a challenging external environment”.

The results put the London-based firm on course for its fourth-straight year of profit under Winters, having scored its first annual loss for more than a quarter of a century in 2015 owing to bad debts and fines for misconduct.

It said revenues jumped 7% in the period, with Hong Kong — a major source of income — also enjoying a pick-up as the bank weathered months of sometimes violent protests that have rocked the city and likely sent its economy into recession.

Net profit came in at $772 million, slightly up from $752 million in the same quarter last year.

It also reported that revenue rose by a fifth in Europe and the Americas, days after HSBC Holdings Plc announced it was underperforming in those regions and warned of a tough outlook.

In a statement with the results yesterday, Winters said: “Our strategy of the last few years has progressively created a stronger and more resilient business.

“The continuing execution of that strategy remains our priority, enabling us to face the more challenging external environment confidently.”

The bank posted an 8.6% return on tangible equity, a key profit target, but said it hoped to increase that to 10% by 2021.