Standard Chartered, the emerging markets bank, said on August 07 that net profit jumped by almost a third during the first half of 2007, helped by strong performances in Asia, Africa and the Middle East. The Britain-based bank said profit after tax grew by 27 percent to 1.399 billion dollars (1.014 billion euros) in the six months to June 30, compared with the first half of 2006.
Pre-tax profit grew 30 percent to a record 1.980 billion dollars, beating analysts' consensus forecast of 1.833 billion dollars.
"I am pleased to report that Standard Chartered has had an excellent first six months in 2007 driven by strong organic growth in both Consumer Banking and Wholesale Banking," group chairman Mervyn Davies said in the earnings statement. "Over the last few years we have consistently produced record results while building a strong foundation for growth. Today we are seeing the rewards of our balanced and diverse business, leading the way in the dynamic markets of Asia, Africa and the Middle East," he added.
The bank, which since the start of 2007 has been led by new chief executive Peter Sands, added that bad debts - or loans that have been written off - climbed by 3.4 percent to 361 million dollars during the first half.
However Standard Chartered said it saw no major credit problems in its markets despite a troubled mortgage sector in the United States. "As I travel around and talk to experienced bankers and investment managers, it is quite clear they share our concerns over the level of asset prices, the amount of debt in leveraged deals, loose covenants and the degree to which some people believe this market will last forever," Davies said in the results statement.
"We know that risks can emerge quickly: the subprime mortgage lending issue in the US is a classic example of this. We are not exposed to that and, indeed, we are seeing no significant credit deterioration in our markets.
"However we need to be vigilant and we remain extremely disciplined on our loan and credit standards," Davies added. Standard Chartered added Tuesday that group income increased 28 percent to 5.26 billion dollars during the first half of 2007.
The group declared an interim dividend of 23.12 cents per share, up 11 percent. Following release of the results, Standard Chartered's share price stood at 1,593 pence, up 1.46 percent. London's FTSE 100 index of leading shares, on which Standard is traded, jumped 1.00 percent to 6,251.20 points.
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