StanChart set for another record year

Standard Chartered said its income should grow by at least 10 per cent this year to put it on track for a ninth straight year of record earnings, although problems in India saw growth slow in the latest quarter.

A further slowdown in India, where the bank said conditions are likely to stay difficult for the medium term, showed the Asia-focused bank is not immune from economic wobbles, although its performance was proving resilient, analysts said.

Other markets are taking up most of any slack and the bank has added between 700 and 800 jobs this year as rivals cut staff. It said it is winning business from western rivals who are retreating.

Hide Ad
Hide Ad

StanChart’s London-listed shares were down 3 per cent at one stage. Analysts blamed the fall on income growth slowing to a “high single digit” per cent in the first nine months of the year from more than 10 per cent in the first half.

The bank said it expects full-year growth to return to over 10 per cent, but the guidance implied growth was 5 per cent or less in the third quarter, according to Alex Potter, analyst at Berenberg Bank.

StanChart’s update came on the same day as lenders Westpac Banking of Australia and DBS Group of Singapore posted strong earnings, signalling banks which are focused on Asia and which have refrained from overly risky bets were still able to post growth.

The London-headquartered bank, which makes more than 80 per cent of its earnings in Asia and other emerging markets, did not give specific figures as it is only required to report those on a bi-annual basis.

Related topics: