StanChart records double digit increase in January March income
Standard Chartered today said it recorded a double-digit growth in its income in the first three months of the year. The rise was driven by growth in the wholesale and consumer banking businesses. Lower expenses, following a reduction in the number of employees, also aided earnings, the British bank said in its interim management statement.
At a pre-tax level, India is currently Standard Chartered’s most profitable market. In 2010, the lender’s pre-tax profit from India rose to $1.2 billion, compared to the previous year. Income from business in India stood was $2 billion last year.
“Standard Chartered has enjoyed an excellent start to 2011, with good momentum in both businesses. We continue to benefit from the disciplined execution of our strategy and we remain very well positioned in dynamic markets, with strong fundamentals,” said Group Chief Executive Officer, Peter Sands. The bank’s income from consumer banking business was driven by growth in wealth management business in Hong Kong and Singapore. Personal loans and credit cards also recorded good growth, while retail mortgage income declined during the January-March period.
“The wholesale banking business had a strong start to 2011, with client income above the projected rate for the first half of 2010,” Standard Chartered said. The bank said its expenses in the January-March period were broadly in line with those seen in the second half of 2010. “While cost-income jaws are negative compared to the first quarter of 2010, they are significantly narrower than those in 2010,” the bank said.
The bank, however, did not disclose the number of employees who resigned during this period. “We are maintaining a firm grip on expenses, with headcount levels at the end of the first quarter slightly below the level seen at the end of 2010,” the bank said. According to reports, the bank’s employee headcount declined by 800 in the January-March period from 85,000 at the end of 2010.
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