|Weak profit outlook hits StanChart shares
Shares in Standard Chartered tumbled in Hong Kong after the bank warned that operating profit could fall at least 10 percent this year.
The Asia-focused lender said it had been adversely affected by weakness in its South Korean business, which had tempered improvement elsewhere.
Because of this, it said operating profit in the consumer banking arm would be down by “a double digit rate'' from last year's US$1.75 billion. It also said wholesale banking profit would be flat.
The news sent the bank's shares tumbling 6 percent in early trade before recovering slightly to end the morning session 4.38 percent lower.
“Difficult market conditions that began in August have continued in the second half and are likely to remain through to the year end. This has had a significant impact on business performance in the second half,'' a statement on the bank’s website said Wednesday.
“Income for the full year is expected to be broadly flat on 2012,'' the bank said.
The bank last month lowered its annual revenue growth target to a range of 7 to 9 percent for the next “couple of years,’’ from an initial forecast of at least 10 percent.—AFP