‘Stronger, leaner’ bank celebrates rise in profits
BANKING group Standard Chartered has cheered an “encouraging” start to 2017 after posting a 93% leap in halfyear profits as restructuring efforts pay off.
Bill Winters, chief executive of the Asian-focused bank, said the group was now “stronger, leaner and becoming more efficient” as revenues stabilise following two years of hefty recovery action and steep losses.
But shares in the London-listed group fell 5% as it said it would still not resume paying dividend payouts amid “regulatory uncertainties”.
The group said it would review its dividend policy at the end of the year.
Half-year results showed underlying pre-tax profits jumped to £1.4bn as income lifted 6% to £5.4bn.
Bottom-line pre-tax profits were 82% higher at £1.4bn.
Mr Winters said: “We have had an encouraging start to 2017, making steady progress against our strategic objectives. Our increased profitability and improved asset quality over the last year reflect the success of this approach.”
The bank’s loan impairments almost halved in the first half, down 47% to £495m.
Standard Chartered is turning the corner after a tough past five years, when it was fined by US regulators for sanctions breaches in 2012 and was left with surging loan impairments following over-expansion in the 2000s.
It remained in the red in 2016 with losses of US $478m (£361m), having slumped to its first annual loss since 1989 the previous year.