Credit conditions stabilising, says Standard Chartered

29th Oct 2009 08:36

Asia-focused bank Standard Chartered said its markets in Asia, Africa and the Middle East are pulling out of the recession quicker than many markets in the West.The group, which notched up record income and profits in the first half of the year, said it continued to make 'good progress' in the third quarter.'It is clear that the economies in Asia are rebounding and they remain resilient. Their economic growth rates remain well above the rates of growth for markets in the West,' the company said.However, the strong performance of Asian markets has not gone unnoticed by Standard Chartered's competitors, and is 'attracting increased levels of competitive behaviour from both local and international banks.'The group's Wholesale Banking arm's client income in the third quarter was on a par with levels seen in the first half 0f 2009. Client income accounts for around three-quarters of the division's total income.Transaction banking performance remained strong, especially trade finance, which had a record quarter.Trade margins remain strong but cash management margins continued to contract in the third quarter.Credit quality in the Wholesale Banking portfolio remains good while early warning flags on possible bad debts have shown a positive trend since peaking in March 2009-10-29The Consumer Banking arm continued the trend of rising income quarter on quarter.Portfolio credit quality in Consumer Banking continues to improve, with the third quarter loan impairment charge 'some tens of millions better than the US$300 million charge signalled at the time of the interim results.'Nevertheless, group chief executive Peter Sands said it was 'too early to call a sustained recovery and we remain cautious on the outlook.'