Standard Chartered announces record profits for 2011

Standard Chartered PLC has announced a ninth consecutive year of record profits and income in 2011. Its continued performance is underpinned by strong capital and liquidity and multiple sources of income across the faster-growing markets of Asia, Africa and the Middle East. Income was up 10 per cent to US$17.64 billion and operating profit increased 11 per cent to US$6.78 billion.

The Group now has 24 markets generating income and 14 producing profits of more than $100 million. The diversity of different businesses and geographic markets gives the Bank resilient income momentum and enables it to grow even when some markets have a difficult year. In each of the last five years, it has increased capital levels, staff numbers, earnings per share and dividends, as well and income and profits. Over the same period total lending has increased by 91 per cent.

The Group has a policy of maintaining a strong capital and liquidity position, which enables it to stay open for business and take market share through the economic cycle in core areas of business such as trade finance. At the end of 2011, the Core Tier 1 ratio was 11.8 per cent and advances to deposits ratio was 76.4 per cent. The Group has no direct sovereign exposure to Greece, Ireland, Italy, Portugal or Spain.

During the year, customer deposits grew by 11 per cent to US$352 billion and lending to customers by 9 per cent to US$269. Cost growth was in line with income growth, at 10 per cent, despite the UK Bank Levy of US$165 million. Staff numbers were up by some 1,600 over the year to nearly 87,000.

Consumer Banking income climbed 12 per cent to US$6.79 billion and profit 26 per cent to US$1.65 billion as the transformation programme continued. The business benefited from selective growth in unsecured assets, improving deposit margins and the impact of the investments made in 2010. Good income growth was seen in all the High Value Segments of Private Banking, up 21 per cent, SME, up 14 per cent, and Priority Banking up, 10 per cent.

Wholesale Banking income and profit were both up 9 per cent, to US$10.85 billion and US$5.22 billion respectively. Client income, 82 per cent of the total, grew by 10 per cent as the Bank continued to do more business with its existing clients and invest in products and services to meet their needs. Financial Markets, which includes Foreign Exchange, Rates, Commodities and Equities, Capital Markets and Credit, is linked to the Transaction Banking services provided to clients, which gives it resilience despite difficult market conditions. Income was up 12 per cent to US$3,688 million. Corporate Finance income was up 10 per cent to US$1,873, having closed 15 per cent more transactions compared to the previous year, and after a very strong finish to 2011.

Wholesale Banking benefits from the Group’s strong international network and franchise, with 48 per cent of income generated from clients doing business outside their home markets.