Standard Chartered PLC has announced a ninth consecutive year of record profits and income in 2011. Its continued performance is underpinned by strong capital and liquidity and multiple sources of income across the faster-growing markets of Asia, Africa and the Middle East. Income was up 10 per cent to US $17.64 billion and operating profit increased 11 per cent to US $6.78 billion.
The Group now has 24 markets generating income and 14 producing profits of more than $100 million. In each of the last five years, it has increased capital levels, staff numbers, earnings per share and dividends, as well and income and profits. Over the same period total lending has increased by 91 per cent.
At the end of 2011, the Core Tier 1 ratio was 11.8 per cent and advances to deposits ratio was 76.4 per cent. The Group has no direct sovereign exposure to Greece, Ireland, Italy, Portugal or Spain. During the year, customer deposits grew by 11 per cent to US $352 billion and lending to customers by 9 per cent to US $269. Cost growth was in line with income growth, at 10 per cent, despite the UK Bank Levy of US $165 million. Staff numbers were up by some 1,600 over the year to nearly 87,000.
Consumer Banking income climbed 12 per cent to US $6.79 billion and profit 26 per cent to US $1.65 billion as the transformation programme continued. The business benefited from selective growth in unsecured assets, improving deposit margins and the impact of the investments made in 2010.
Wholesale Banking income and profit were both up 9 per cent, to US $10.85 billion and US $5.22 billion respectively. Client income, 82 per cent of the total, grew by 10 per cent as the Bank continued to do more business with its existing clients and invest in products and services to meet their needs.
Financial Markets, which includes Foreign Exchange Rates, Commodities and Equities, Capital Markets and Credit, is linked to the Transaction Banking services provided to clients, which gives it resilience despite difficult market conditions. Income was up 12 per cent to US $3,688 million. Corporate Finance income was up 10 per cent to US $1,873, having closed 15 per cent more transactions compared to the previous year, and after a very strong finish to 2011.
Overall loan impairment was up 3 per cent. In Consumer Banking loan impairment decreased by 9 per cent to US $524 million, but increased in the second half of the year reflecting the changing size and the mix of the loan book. The Bank remains comfortable with overall exposures.
Peter Sands, Group Chief Executive, Standard Chartered has said that "Our ninth consecutive year of record income and profits demonstrates the power of our strategy and the resilience of our businesses. Our capital and funding strength allows us to remain open for business and win more market share.-PR