Record January for Standard Chartered

2nd Mar 2011 07:03

Profits in 2010 from Asia-focused bank Standard Chartered were bang in line with forecasts at $6.12bn, while 2011 got off to a record start.Profit before tax rose by just under a billion dollars from 2009's $5.15bn, with India contributing more than any other region to profits for the first time in the bank's history.Impairment losses on loans and other credit risk provisions tumbled to $0.88bn from $2bn in 2009.Operating income rose to $16.06bn from $15.18bn in 2009.The bank's capital ratios are looking healthier following the group's £3.26bn rights issue last year, with the core Tier 1 capital ratio improving to 11.8% from 8.9% while the total capital ratio climbed to 18.4% from 16.5%.As hinted at in the group's December trading statement, the net interest margin - the gap between the interest rate it charges borrowers and the rate it pays savers - fell back, to 2.2% from 2.3% in 2009, reflecting the continuing low margins on liability products and also some pressure on asset margins in the latter half of 2010 as competition intensified.Loans and advances to customers increased by 22% to $246bn from $202bn in 2009. The advances to deposits ratio eased to 77.9% from 78.6%.Normalised earnings per share of 197.0 cents, up from 173.2 cents the year before, were also in line with brokers' expectations.A final dividend of 46.65 cents has been recommended, pushing the full year pay-out up to 69.15 cents, a 9% improvement on last year.The bank's bonus pool has "increased modestly on 2009 levels" to $1.19bn, an increase justified by "a profit increase of 19% and a 9% rise in headcount," claimed group chairman John Peace. The 2009 bonus pool was $1.1bn.The new year has got off to a flying start, with the group enjoying a record January, both in terms of income and profit."In Wholesale Banking, client income remains strong, ahead of last January and in line with the general trend of client income contributing around three quarters of total income. Our deal pipelines remain very good," said group chief executive, Peter Sands. "In Consumer Banking ... we have seen continued steady income progress in the first month and start 2011 without the significant drag of liability margin pressure," Sands added.