Standard Chartered profit up 19%

by Gill Montia

Story link: Standard Chartered profit up 19%

Standard Chartered has reported a 19% rise in pre-tax profits for 2008, to £3.4 billion.

The emerging markets bank, which is listed in London and Hong Kong, saw impairment charges increase from $761 million to $1.321 billion but remains happy with its balance sheet, having raised £1.78 billion in a rights issue in November.

According to chief executive, Peter Sands, Standard Chartered’s capital ratio improved in the second half of 2008, to 7.6% at the end of December, and the business is therefore well placed to take advantage of opportunities arising from the turmoil of the credit crisis.

It will, however, approach any possible acquisitions carefully and retain its focus on Asian, African and Middle Eastern markets.

Mr Sands also expressed confidence that Standard Chartered’s key Asian markets would recover from the financial crisis more quickly than those in Europe and the US.

The bank, which is now the UK’s second-largest by stock market value, is recruiting a new chairman following the resignation earlier this year of Mervyn Davies, who left in January to take over the responsibilities of former trade minister, Lord Jones.