1st Aug 2019 09:05
(Alliance News) - Standard Chartered PLC on Thursday reported strong profit growth in the first half as the lender said it is making continued progress in its transformation plans, set out in 2015.
The Asia-focused bank also upped its first half dividend by 17% to 7.0 US cents from 6.0 cents a year before.
In the six months to June 30, the lender's pretax profit grew 2.5% to USD2.41 billion from USD2.35 billion the year before.
Standard Chartered's underlying pretax profit expanded 11% to USD2.61 billion. In Greater China & North Asia, StanChart's underlying profit increased 3.1% to USD1.33 billion.
Within units, the lender's Corporate & Institutional Banking unit saw underlying profit grow 24% to USD1.35 billion. StanChart attributed the increase to its Cash Management and Financial Markets divisions.
StanChart's operating income increased 2.6% in the first half to USD7.83 billion from USD7.63 billion. The lender's net interest income saw 5.7% growth to USD4.64 billion from USD4.39 billion.
"We made good progress both financially and on our strategic priorities in the first half, growing income and improving profits, at constant currency. We have positioned ourselves to develop and scale innovative new business models, as we support and grow with our clients. We are investing now to create optionality for the future, and I am excited by the opportunities we are already generating," said Chief Executive Bill Winters.
StanChart's preferred performance measure, return on tangible equity, saw an 88 basis point bump year-on-year to 8.4%.
The bank's cost-to-income ratio improved to 67.7% compared to 68.0% in the first half last year.
The lender's net interest margin at in the first half was unchanged year on year at 1.59%.
StanChart ended the half with a CET1 ratio of 13.5% compared to 14.2% the year before.
The bank's total loan book increased 1.7% year on year to USD263.6 billion with customer accounts rising 5.1% to USD401.6 billion.
Winters continued: "Sentiment in and relating to many of our markets remains delicately balanced, tipping one way or the other mainly because of geopolitical pressures. The dispute between China and the US has moved beyond trade into areas of security and technology, which will likely prove more difficult to resolve. The global economy is still growing but inflation is stubbornly low so dollar interest rates look likely to decline, presenting us with some additional challenge."
He added: "Our refreshed strategic priorities build on our purpose and earlier areas of focus, but mark a sharp change in the way we operate as we go from turnaround to transformation."
Shares in Standard Chartered were 3.8% higher in London on Thursday morning at 702.60 pence each.
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