Standard Chartered Posts Record Profit
Standard Chartered PLC on Wednesday posted a record net profit for 2010, driven by increased wholesale income and a sharp reduction in loan-impairment charges.
The U.K.-based, Asia-focused lender said its net profit rose 29% in 2010 to a record $4.23 billion from $3.28 billion a year earlier. Total operating income for the 12 months ended Dec. 31 was $16.1 billion, up 5.8% from $15.2 billion in 2009, while loan-impairment charges dropped 56% to $883 million from $2 billion.
Standard Chartered said it expects to keep delivering double-digit income growth this year despite higher costs, regulatory pressures and a cautious forecast for the world economy.
Chief Executive Peter Sands called regulation the bank's "biggest external challenge" and estimated a new U.K. levy on large banks' balance sheets will cost it around $180 million after tax this year.
Mr. Sands said the bank has started 2011 with good momentum and volume growth in both wholesale and consumer banking. He said earnings and return on equity this year will reflect that momentum, but that dilution from last year's $5.2 billion rights issue and the U.K. levy will have an impact.
Costs grew 13% in the year, from increased regulatory and compliance factors and higher staff costs, but Finance Director Richard Meddings told Cantos he is confident cost growth should be brought back into line with income growth this year.
Standard Chartered PLC on Wednesday posted a record net profit for 2010, driven by increased wholesale income and a sharp reduction in loan-impairment charges.
The U.K.-based, Asia-focused lender said its net profit rose 29% in 2010 to a record $4.23 billion from $3.28 billion a year earlier. Total operating income for the 12 months ended Dec. 31 was $16.1 billion, up 5.8% from $15.2 billion in 2009, while loan-impairment charges dropped 56% to $883 million from $2 billion.
Standard Chartered said it expects to keep delivering double-digit income growth this year despite higher costs, regulatory pressures and a cautious forecast for the world economy.
Chief Executive Peter Sands called regulation the bank's "biggest external challenge" and estimated a new U.K. levy on large banks' balance sheets will cost it around $180 million after tax this year.
Mr. Sands said the bank has started 2011 with good momentum and volume growth in both wholesale and consumer banking. He said earnings and return on equity this year will reflect that momentum, but that dilution from last year's $5.2 billion rights issue and the U.K. levy will have an impact.
Costs grew 13% in the year, from increased regulatory and compliance factors and higher staff costs, but Finance Director Richard Meddings told Cantos he is confident cost growth should be brought back into line with income growth this year.
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