Standard Chartered PLC on Wednesday announced a rise of 9 percent in both income and profits to $9.51 billion and $3.95 billion respectively for the first half of 2012. This represents a tenth consecutive record first half of profit growth. The diversity of our income from a range of countries, products and services continues to underpin our success.
Growth in our footprint markets of Asia, Africa and the Middle East remains robust and our extensive network across the major global trade and investment flows continues to provide a key source of competitive advantage. SC PLC is increasing investment in infrastructure, in new branches, and in technology, building out deposit-gathering network. It has aim to have 100 branches in China and India by our full year results next year.
BALANCE SHEET The Group's balance sheet is in excellent shape and SC PLC continues to be well diversified, strongly capitalised and primarily deposit funded. We have already met Basel III capital requirements with a Core Tier 1 of 11.6 percent and we have very strong Advances to Deposits ratio of 77.6 percent. We continue to benefit from being the only major international bank to be upgraded by all three rating agencies since the onset of the financial crisis.
Asset quality is good, although we remain watchful given the strongly challenged macro-economic environment. We have limited refinancing requirements over the next few years. LOAN IMPAIRMENT At a Group level loan impairment remains at very low levels albeit up by 42 percent on the first half and 18 percent on the second half of 2011. SC PLC has seen some increase in loan impairments in both businesses, but from very low levels, and we remain very comfortable with the shape and quality of our loan book. Standard Chartered PLC remained disciplined and proactive in our approach to risk management. In the Consumer Bank, 82 percent of the lending book is either fully or partially secured.
CONSUMER BANKING The Consumer Banking transformation programme continues to make good progress and we are investing in the business in order to grow both our customer base and customer service capabilities.
Income grew 5 percent year on year to US $3.5 billion. Deposit income is up strongly, 14 percent year on year, with income in Credit Cards and Personal Loans, showing excellent momentum, up 13 percent year on year as we continue to grow balances, up 7 percent since the year end. SME continues to perform well with 7 percent income growth year on year driven by Lending, Trade and Cash Management.
Within Consumer Banking, a 3 percent slowdown in Wealth Management income, the one-off expense recoveries of US $86 million last year and the increase in loan impairment of 42 percent has resulted in an operating profit reduction of 11 percent on the first half of 2011, as previously guided.
WHOLESALE BANKING Wholesale Banking has delivered another strong performance, reflecting the resilience of the business model, the continued business activity of our client base and underlying growth within our footprint. Income is up 10 percent on the first half of 2011, with client income contributing 80 percent of total Wholesale Banking income.-PR