6th Feb 2020 11:40
(Alliance News) - Standard Chartered PLC on Thursday said it will change its accounting policy and added that it expects an increase in the UK banking levy for 2019.
The new accounting system, the FTSE 100 bank said, will be a better reflection of its "underlying performance". The new accounting system is effective from its 2019 annual report, which will be published on February 27.
"There is no change in total income, only a reclassification between net interest income and net trading income on the face of the income statement," the London-based lender explained.
Using the new accounting method, 2018's net interest income will be restated to USD7.90 billion 11% lower than the USD8.79 billion which was initially reported. Other income however, will be 17% higher at USD6.99 billion from USD6.00 billion.
Therefore, operating income from 2018 will be unchanged at USD14.97 billion under the new accounting policy.
Standard Chartered added: "The revised accounting policy will result in the group recognising all gains and losses from the trading book within trading income. As before, interest income and expense from the banking book positions will still be presented in net interest income."
The company added that it anticipates a 7.1% year-on-year increase in the UK bank levy to USD347 million from USD324 million in 2018.
The levy is a government charge imposed on banks, on top of any normal taxes they are also required to pay.
Standard Chartered shares were 0.5% higher at 644.00 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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