Standard Chartered first half profit rises
Standard Chartered’s first-half profit rose by almost a quarter as revenue rose and bad debts halved at the emerging markets-focused bank.
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Underlying pre-tax profit for the six months to the end of June rose 23% to $2.4bn (£1.8bn) as operating income rose 6% to $7.6bn.
Credit impairment dropped to $293m from $583m a year earlier. Operating costs rose 7% to $5.1bn as Standard Chartered invested in digital banking services and internal efficiency programmes.
Return on equity rose to 6.7% from 5.2% a year earlier and the bank said it was on track to meet its target of 8%. Having restarted dividends in the second half of 2017 the bank declared an interim dividend of 6 cents a share.
Standard Chartered’s chief executive Bill Winters said: "The group performed steadily in the first half with encouraging progress on several fronts. Income from key areas of focus continues to grow strongly, we are investing in exciting new initiatives, and our strengthened risk discipline is paying off.
“Our return on equity improved to 6.7 per cent as a result, reinforcing our confidence that we will exceed 8 per cent in the medium term and underpinning the Board's decision to resume the interim dividend."
Standard Chartered cancelled its dividend when Winters took over as chief executive in 2015. He cut costs and cleared out unwanted business after a period of rapid expansion that left the bank with high bad debts and unprofitable operations.
Winters said Standard Chartered’s business in Asia, Africa and the Middle East was supported by solid economic growth but he warned of increased trade friction and geopolitical risks as the Trump administration dabbles in protectionism.
The bank's shares fell 3.6% to 672p at 08:20 BST.