Stanchart Profit Rises Ten Percent to $2.84 Billion

Aug 17, 2009 (Ghanaian Chronicle/All Africa Global Media via COMTEX) -- SCBFF | Quote | Chart | News | PowerRating -- Standard Chartered PLC announced another record performance for the first half of 2009, with income rising 14 per cent to US$7.96 billion, and operating profit before tax10 per cent to $2.84 billion, together with a substantial income momentum across its markets, with four key geographies reporting over $500 million of income each in the first half.

The group said its performance was driven by strong momentum in wholesale banking, with income rising 37 per cent, benefiting from market dislocation and volatility, leading to market share gains.

Restructuring initiatives in consumer banking began to show early positive results, with income falling only three per cent over the second half of 2008, while operating profit increased 11 per cent over the same period.

Peter Sands, Group Chief Executive, Standard Chartered, said, "These results show record income and profit performance, characterised by significant momentum over both the first and second halves of last year. Our balance sheet strength is now a source of competitive differentiation, helping us win more businesses. We are in the right markets at the right time."

According to a statement issued by the bank, the group's portfolio continued to perform well, given the underlying economic conditions, though both in wholesale and in consumer banking customers were experiencing increased financial pressure.

It said, the group remains vigilant and continues to take a proactive approach to managing risk, by tightening underwriting standards, increasing collateral requirement, reshaping the unsecured business away from high risk segments, and significantly increasing collection resources.

Richard Meddings, Group Finance Director, Standard Chartered, said, "The second half of 2009 has started well, with wholesale banking in July running ahead of the first half average monthly profit with robust transaction pipelines."

Standard Chartered also announced a placing of new shares to raise approximately $1.6 billion, or around 4 per cent of issued share capital, through an accelerated book build.

In Africa, the bank achieved record levels of income and operating profit in H1 2009. The Wholesale Bank delivered an exceptional first half on the back of the continued focus on growing strategic and value-add products.

In Ghana, Standard Chartered's operating income grew 64.5% year-on-year to hit a record GHc88m, with both the wholesale and consumer businesses making very significant contributions.

The bank maintained a strong balance sheet growth during the first half of 2009, with loans and advances and customer deposits growing by 21% (GHc472m) and 30% (GHc760m) year-on-year respectively.

The bank reinforced its position in the Ghanaian market by achieving a significant trading profit of GHc40.9 million at the end of the first half.

Commenting, Hemen Shah, CEO SCB Ghana and Area General Manager for West and Central Africa, said, "We have made an excellent start to 2009, reporting record first half results. The bank is in great shape, and we have strengthened our foundation for efficient and sustainable growth within our strategic segments in the market.

"We remain a distinctive investment, delivering outstanding performance and superior returns to our shareholders, and have consistently led the way in delivering innovative product propositions to our customers.

"We are extraordinarily well-placed for the huge opportunities in our market, and absolutely remain confident in Ghana's long-term success."

Standard Chartered's economic contribution to Ghana has been the culmination of over 113 years of sustained and increasing investment in the country.

Currently, the bank's shares remain the highest priced financial stock on the Ghana Stock Exchange, at GHc29 per share.

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