StanChart profit jumps 17 percent, books US$190 million charge on Iran war

Standard Chartered (2888) said on Thursday that first-quarter pretax profit climbed 17 percent, helped by a strong performance from its global banking and trading divisions as well as healthy inflows for its wealth management business.

StanChart, which earns most of its revenue in Asia and Africa, reported pretax profit for the quarter of US$2.45 billion. That compares with US$2.10 billion a year earlier and the US$2.14 billion average of 15 analyst estimates compiled by the bank.

The bank took a US$190 million provision against potential losses arising from the impact of the Middle East conflict, pushing up its total credit costs to US$290 million in the quarter.

StanChart and HSBC (0005), which have both bet on the Middle East's increasing trade with Asia and other markets to fuel their growth, are two of the global banks most exposed to the war with Iran, according to company data and sector analysts.

"Despite ongoing geopolitical tensions and global economic uncertainty, our advantaged market presence and disciplined risk management give us confidence in our ability to perform," Chief Executive Bill Winters said in a statement.

Reuters

 

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