30th Oct 2019 04:49
(Alliance News) - Standard Chartered PLC on Wednesday warned of "growing headwinds" despite achieved solid profit growth in the third quarter of 2019.
For the three months to September, StanChart's pretax profit rose by 4% year-on-year to USD1.11 billion, with the underlying figure up 16% to USD1.24 billion.
The FTSE 100 bank's income climbed by 7% to USD3.98 billion, and StanChart said there was "broad-based growth" across all business segments and regions.
There was a particularly strong performance, it continued, from Corporate & Institutional Banking, which grew income by 13%, and Private Banking, which increased income by 14%.
Looking geographically, the strongest growing regions were Europe & Americas, which grew income by 19%, and the Association of Southeast Asian Nations & South Asia, which was up 13%.
The firm's common equity tier 1 ratio, or CET1, was 13.5% for the quarter, within StanChart's 13% to 14% target range.
The net interest margin was 1.56%, the same as the year prior, but compared to 1.62% in the second quarter. StanChart's return on tangible equity was 7.5%, from 5.0% in the second quarter and 7.0% the year before.
The cost to income ratio was 64.8%, from 67.5% in the second quarter of 2019 and 68.4% a year prior.
"Our strategy of the last few years has progressively created a stronger and more resilient business as evidenced by a 16% increase in underlying profit in the third quarter," said Chief Executive Bill Winters.
"The continuing execution of that strategy remains a priority, enabling us to face the more challenging external environment confidently, determined to continuously enhance our service to our clients, our performance-oriented culture and our profitability."
However, StanChart wared there are "growing headwinds", in the form of continued geopolitical tensions as well as an expected slowdown in global economic growth and lower interest rates.
Shares in London closed 0.4% higher on Tuesday at 695.00 pence each. In Hong Kong, they were up 0.1% Wednesday at HKD69.40.
By George Collard; [email protected]
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