StanChart still expects 10pc growth despite euro crisis

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Asia-focused bank Standard Chartered still expects full-year profit growth of 10 per cent after slowing below that rate in the first half as the eurozone crisis hit wealth management income and Asian currencies weakened.

First-half revenue growth was also expected to be below 10 per cent, as Indian and Korean markets were weak and mortgage income in Hong Kong fell, StanChart said yesterday.

“My numbers show we can hit double-digit (full-year) income growth,” finance director Richard Meddings said. “The issue is, in a world like this with the eurozone pressures and exchange rates, there is more risk to the downside.”

Africa, China, Indonesia and Malaysia all delivered revenue growth over 10 per cent in the first half. But the eurozone crisis hit investor sentiment in May and June, Mr Meddings said, and wealth management income was hurt by weak demand for equity products. Global trade volumes could be hurt if the crisis continues, he said.